Bottom line: USDJPY bearish structure remains intact until prices trade below 112.22 levels. Bears remain poised to push lower towards 94.00 levels and a break below 101.50 would accelerate the drop.
Fundamental Outlook:
Oil prices continue to slide lower as WTI Crude dropped below $19.25 though marginally. Despite the production cut agreed by the OPEC members and a truce between Russia and Saudi Arabia, the slide continues.
With a decline in new cases and deaths caused due to COVID-19 pandemic, most countries plan to open their economies. France and Italy decides to prolong their lockdowns until early May 2020.
Today’s events:
Bank of England Liabilities/Credits Survey @ 04:30 AM EST
Initial US Jobless Claims @ 08:30 AM EST
Technical Analysis:
USDJPY remains in control of bears as it hits 107.00 mark yesterday; but probabilities still remain for a push towards 110.00 before reversing sharply. Either way, we can expect a continued drop either from 108.50/60 or 110.00 levels, going further.
USDJPY has been correcting lower since 125.80 highs and is expected to complete its drop around the 94.00 mark. After having produced a multi-year bearish triangle, the USDJPY finally terminated around 112.40 mark. This is defined as a strong resistance going forward.
The drop between 112.40 and 101.18 broke below the triangle support. Furthermore, the subsequent rally stalled at 112.22, just above the fibonacci 0.786 retracement of the previous drop. Lower degree waves suggest a lower top could be in place at 109.50 levels and USDJPY is expected to slide lower.
A break below 101.18 would be required to break out of the price range and accelerate lower towards 94.00 levels. Any intraday pullback should face resistance around the 108.50 mark.
Most traders might be willing to hold short positions taken earlier and add further around 108.50. Protective stops might be placed at 112.22 and projected targets below 101.50.
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。
