Bottom line: USDJPY bearish structure remains intact as long as prices stay below 112.22 resistance. It is expected to carve a lower top around 109.00/110.00 levels before giving in to bears again.
Fundamental Outlook:
Today’s highlights are the OPEC meeting outcome, the Euro zone Finance Ministers meeting amidst the Corona Crisis, Fed Chair Powell’s brief on the Economic Situation along with the global effect of COVID-19 pandemic.
Oil price outlook would depend on the OPEC meet output today. Last week had seen Oil prices rallying up to 40% on the possibility of an end to the price war between Russia and Saudi Arabia. A unanimous decision on a production cut would be constructive for Oil and could be heading north again. Output may be reduced by 10 million barrels per day, as hinted by Mr Putin last week.
Global Equity Markets continued to rally yesterday with Dow Jones hitting close to 23400/500, while the SPX500 closing around 2750 levels respectively. This was mainly backed by the ongoing stimulus added by most Central Banks and signs of COVID-19 new cases having peaked in the U.S. A continued rally in the markets would put pressure on the USDJPY as well.
New York, the epicenter of outbreak in the U.S, has seen around 10% drop in new cases along with lesser deaths. The total cases in the U.S still tops the list at 435,128, with 201 new cases and around 7 deaths.
Today’s Events:
- 08:30 AM EST US Initial jobless claims expected to print lower at 5000K against 6648K
- 08:30 AM EST CAD Unemployment rate set to rise at 7.5% against 5.6%
- 10:00 AM EST Fed Chair Powell to update on Economy
- 10:00 AM EST USD U. of Mich. Sentiment to print lower at 75.0 versus 89.1
- 10:00 Am EST OPEC+ Virtual Meeting
Technical Analysis:
USDJPY is trading just below the 109.00 handle at this point in writing and it is expected to resume lower towards 101.00 in the near future. The single currency pair is expected to face strong resistance around 110.00 as it is fibonacci 0.618 retracement of the recent drop.
Most traders might be looking to hold on short positions taken earlier and add further around 110.00 if prices reach there. A protective stop loss might be kept above 112.22/40 with projected targets towards 101.00 respectively.
Overall, the bearish structure remains intact until prices stay below 112.22 and a break below 107.00 would further accelerate the drop.
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。
