Bottom line: USDJPY bearish structure would remain intact until 112.22 levels hold. Bears are prepared to break below 105.00 levels in near term. A consistent break below 103.00 is required to push towards 101.50 and lower.
Fundamental Outlook:
USDJPY exchange rate hit 106.00 mark yesterday as the Japanese Yen strengthened with US indices heading lower. The US Job markets (over 21 million jobs lost in past 4 weeks), trade war fears between the US and China may add further pressure on the USDJPY rate, going ahead. The next levels to watch could be 105.00/20.
NZDUSD employment showed a surprising rise in the first quarter printing 0.7% against a forecast of -0.3% yesterday. This was unexpected since the country wide lock down due to the COVID-19 pandemic effect. NZDUSD rate continued lower and might have settled around 0.6000 yesterday. It remains to be seen how the exchange rate reacts to Reserve Bank of New Zealand monetary policy meeting on May 13. The bearish outlook for Global Indices would also weigh on the NZDUSD exchange rate.
SPX500, along with Dow Jones continues to point lower, as expected and discussed earlier. The SPX500 closed -0.70%, while Dow Jones at -0.91% respectively yesterday. After having recorded over 30% rally between March 23 and April 2020, the SPX500, along with global indices are back under pressure. The effects of Fed stimulus packages seem to be fading as the world stares at a Global Recession induced by COVID-19, and US-China trade war fears ahead.
Technical Analysis:
USDJPY bears remain in control for now with prices dropping to 106.00 levels yesterday. The next immediate target would be 105.00 mark, which is also seen as interim support. Any drop below 105.00 would be encouraging to bears as they prepare to break below 101.50, going forward.
Structurally, USDJPY might be looking to complete its larger degree corrective drop towards 94.00 levels. The drop since 112.40 highs could be seen as initial bearish boundary towards the 94.00/95.00 levels. Only a break above 112.22/40 would void the above bearish structure with bulls back in control.
Traders might remain a bit cautious around 105.00 and take some profits on the short positions taken earlier. Please note it is also the fibonacci 0.618 retracement and a bullish reversal there could change the 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。
