Forex Analysis:USDJPY Potential Support Zone Is Around 104.00/105.00

Bottom line: USDJPY medium structure now turns bullish against 101.18 lows in March 2020. The currency might have bounced off the support zone around 104.00/105.00 recently, as bulls prepare to take control back.

Fundamental Outlook:

NZDUSD had peaked at 0.6715 mark on July 31, 2020 before reversing. The exchange rate is currently seen around 0.6650 mark and is expected to drop further as NZDUSD faces renewed selling pressure over rising US-China rift. Risk appetite might swiftly reverse, dragging NZDUSD down as well.

SPX500 continued its rally and managed to close higher by +0.64%, around 3327. Dow Jones had also rallied over +1.39% closing around 27200 mark. The optimism over stimulus hopes has added to the above rally but this might reverse as US-China tensions continue to escalate further. In the latest, the US Secretary has urged Google and Apple to remove Chinese Apps from their app stores.

USDJPY had managed to rally through 106.50 levels over the last week. The exchange rate is trading lower towards 105.40 mark as we prepare to publish today’s update and set to rise further as US Dollar might gain over the next several weeks. The decision on extending USD 600 per week unemployment benefit is still pending.

Technical Analysis:

USDJPY medium term structure might be turning bullish as discussed over the last week. The currency has confirmed a potential bullish reversal from 104.20 levels as it carves a huge engulfing bullish candlestick pattern on the daily chart. Looking higher for now.

USDJPY drop from 111.75 has been corrective until now and a break above initial resistance at 107.50 will certainly confirm that the trend has reversed. Only a sustained break below 104.20 and 103.50 would indicate that bears are here to stay and push below 101.18 levels.

Also note that prices have bounced from just below the fibonacci 0.618 retracement (105.20) of earlier rally between 101.18 and 111.75 respectively. Probability remains for a continued push towards 107.50 and 110.00 levels, going forward.

Most traders might be looking to add fresh long positions around current price (105.40), with protective stops below 101.18 and projected target towards 107.50 and further. Only a break below 104.20 might change the bullish structure.

Prepared by

Harsh Japee, Technical Analyst.

 

USDJPY Chart

 


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。

風險提示

MyFxtops邁投所列信息僅供參考,不構成投資建議,也不代表任何形式的推薦或者誘導行為。MyFxtops邁投非外匯經紀商,不接觸妳的任何資金。 MYFXTOPS不保證客戶盈利,不承擔任何責任。從事外彙和差價合約等金融產品的槓桿交易具有高風險,損失有可能超過本金,請量力而行,入市前需充分了解潛在的風險。過去的交易成績並不代表以後的交易成績。依據各地區法律法規,MyFxtops邁投不向中國大陸、美國、加拿大、朝鮮居民提供服務。

邁投公眾號

聯繫我們

客服QQ:981617007
Email: service@myfxtop.com

MyFxtops 邁投