Forex Analysis:USDJPY Turns Bullish Against 104.00 Support

Bottom line: USDJPY medium term outlook might be turning bullish against 104.00 lows. The …

Bottom line: USDJPY medium term outlook might be turning bullish against 104.00 lows. The currency pair is trading around 105.45 mark for now and bulls might be preparing to push towards 107.50 over the next few trading sessions.

 Fundamental Outlook:

NZDUSD has been dropping since printing highs around 0.6800 on September 18, 2020. The exchange rate has erased over 275 pips and is trading around 0.6530 mark as we prepare to publish. If risk aversion continues further, the exchange rate might continue to remain under pressure.

USDJPY has bounced back after printing 104.00 lows early this week. The exchange rate has gained over 140 pips and is trading close to 105.40/45 mark as we prepare to publish. The safe haven US Dollar and anti-risk Japanese Yen have remained beneficiaries as global markets and risk assets continue to drop. The exchange rate might gain over the next several weeks.

SPX500 continued its drop further closing around 3242, down by -2.14% yesterday. The indice futures trade lower today around 3229 as we prepare to publish. Dow Jones was down -1.81%, while NASDAQ had collapsed close to -3.00% as risk aversion continues. Investors might remain cautious over the next several weeks as the safe haven US Dollar might continue its gains.

Technical Analysis:

USDJPY bulls might be poised to remain in control after the currency had dropped through 104.00 lows early this week. They have managed to produce a sharp pullback towards 105.45 mark and might be looking to push through 107.00 and 107.50 interim resistance levels.

USDJPY had earlier rallied from 101.18 through 111.75 respectively. Furthermore, the corrective drop managed to reach just below fibonacci 0.618 retracement around 105.20 levels. Bears managed to test the lows by just 20 pips at 104.00 levels before giving in to bulls.

USDJPY drop to 104.00 might have completed the wave structure that had begun since 111.75 levels in March 2020. Bulls might continue to remain in control and take out resistance at 107.50, 108.00 and higher levels until 104.00 remains intact.

Most traders might remain inclined to hold long positions initiated close to 104.00 support with protective stops just below 104.00 and projected target towards 107.50, 108.50 and further. Only a break below 104.00 would change the above bullish structure.

Prepared by

Harsh Japee, Technical Analyst.

 

USDJPY Chart

 

Disclaimer:

“This market commentary and analysis has been prepared for AT Global Markets UK Ltd (ATFX UK) by a third party for general information purposes only. Any view expressed does not constitute a personal recommendation or solicitation to buy or sell as it does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such.

You should therefore seek independent advice before making any investment decisions. This information has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.

 Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. We aim to establish and maintain and operate effective organizational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients.

The market data is derived from independent sources believed to be reliable, however we make no representation or warranty of its accuracy or completeness, and accept no responsibility for any consequence of its use by recipients. Reproduction of this information, in whole or in part, is not permitted.”

 


MyFxtops 邁投 (www.myfxtops.com) -Reliable Forex Copy Trade community, follow the master for free to trade!

Disclaimer: This article is reproduced from the Internet. If there is any infringement, please contact us to delete it immediately. In addition: This article only represents the personal opinion of the author and has nothing to do with Mato Finance The originality and the text and content stated in this article have not been confirmed by this site. The authenticity, completeness and timeliness of this article and all or part of the content and text are not guaranteed or promised. Please refer to it for reference only Verify the content yourself.

Copyright belongs to the author.
For commercial reprints, please contact the author for authorization. For non-commercial reprints, please indicate the source.

 

MyFxtops迈投(www.myfxtops.com)-靠谱的外汇跟单社区,免费跟随高手做交易!

 

免责声明:本文系转载自网络,如有侵犯,请联系我们立即删除,另:本文仅代表作者个人观点,与迈投财经无关。其原创性以及文中陈述文字和内容未经本站证实,对本文以及其中全部或者部分内容、文字的真实性、完整性、及时性本站不作任何保证或承诺,请读者仅作参考,并请自行核实相关内容。

著作权归作者所有。
商业转载请联系作者获得授权,非商业转载请注明出处。

本文来自网络,不代表迈投财经立场,转载请注明出处:http://www.myfxtop.cn/analysis/31009.html

为您推荐

联系我们

联系我们

在线咨询: QQ交谈

邮箱: myfxtop@hotmail.com

9:30 - 18:00/Mon-Fri
返回顶部