USDJPY Daily Forex Analysis
This post is all about today’s analysis of USDJPY. The USDJPY Forex Trading Analysis will help the traders to get the ideas of trading this pair.
USDJPY Long Forex Analysis
The US dollar jumped back on the bid versus a basket of six major currencies, which triggered fresh buying interest around the USDJPY pair, sending the rate further towards the mid-point of 101 handle. The major was last seen exchanging hands at 101.44, up +0.15% on the day. While risk-off sentiment eased a bit amid recovery in the Asian stocks and oil prices, also lending support to the renewed rally in the major. The major will continue to get influenced by persisting risk trends amid low volumes and limited volatility as the Japanese markets stay shut on account of Mountain Day holiday.
USDJPY Short Gartley Pattern
Trend line support is located at 101.16. The selloff is close to a correction count on the intraday chart. The overnight dip has been bought into and there is scope for further bullish pressure going into this morning. Posted a Bullish Outside candle on the 4 hour chart. Bespoke resistance is located at 101.57. Risk/Reward would be poor to call a buy from current levels. Although the anticipated move higher is corrective, it does offer ample risk/reward today. Our profit targets will be 101.70 and 102.00 (USDJPY Forex Trading Analysis).
Possible Point To Go Long
The dollar-yen pair moves back and forth in a 30-pips narrow range so far this session, in response to a lack of fresh fundamental drivers amid holiday-thinned markets. Moreover, muted trading activity seen around the greenback against its major peers, also fails to provide any impetus to the major. While the yen remains better bid as sentiment sours on falling Asian equities alongside oil prices.
USDJPY Long Bullish Signal
The bearish offensive in USDJPY has resulted in a cross of the 50-period below the 200-period SMA. The signal emerged on 4-hour charts further deteriorating the near-term USDJPY price structure. While conservative sellers will wait for a close below recent support as a confirmation of a forthcoming lower low, more aggressive participants will expect a re-test of the crossover level to prove benevolent for continued downside (USDJPY Forex Trading Analysis).
USDJPY Forex Trading Analysis
Markets now eagerly await the US datasets due on the cards later today for further incentives on the major. In terms of technicals , the immediate resistance is located at 101.65/78 (10 & 5-DMA). A break above the last, the major could test 102 (round number). While to the downside, the immediate support is seen at 101 (psychological levels) and below that at 100.84 (Aug 5 low).
May not be ready to operate on this just yet, but I’m on the lookout for some support in USDJPY over the next few days with the pair continuing to respect near-term trendline off the July low. Expect to see some consolidation but broadly looking for a break of the monthly opening-range, which as of now consists of the 8/2 daily candle (100.68 – 102.83). A breach above median-line resistance would be needed to validate a near-term reversal in the pair.