Bottom line: USDJPY medium term structure might have turned bullish against 104.00 recent lows print on September 21, 2020. Bulls have managed to push through 106.00 intermediary highs as they remain poised to take out immediate resistance around 107.00 levels respectively.
Fundamental Outlook:
USDJPY has raised through 106.10 handle yesterday before finding some selling pressure. The anti-risk Japanese Yen has lost some ground as global equity markets rallied after US President Donald Trump’s tweet on the US stimulus package. The talks might only resume after the much hyped US Presidential elections, he had advised earlier, followed by a counter tweet. The exchange rate might face some selling pressure around 107.00 handle.
Technical Analysis:
USDJPY bulls are looking in control for now as they have managed to push through 106.00 handle. The currency might have carved a meaningful higher low around 104.00 mark as bulls might remain poised to push through 109.85 levels over the next several weeks.
USDJPY had dropped through 101.18 lows in March 2020, before reversing sharply. Bulls had managed to push towards 111.75 carving a meaningful bullish boundary to be worked upon. Further, the subsequent drop from 111.75 through 104.00 seems corrective.
Also note that USDJPY had dropped marginally below fibonacci 0.618 retracement of the above rally towards 104.00 before bouncing back. Ideally, prices should hold above 104.00 and push through 107.00, 109.85 and higher levels respectively.
Looking at the recent rally between 104.00 through 106.00 levels, USDJPY might produce a corrective drop in the short term towards 105.50 levels, before turning higher again. Bulls might remain in control going forward, and prices might hold above 104.00.
Most traders might be prepared to hold long positions initiated around 104.00 mark and also add more towards 105.50, with protective stops below 104.00 and target potential through 107.00, 109.85 and higher respectively.
Prepared by
Harsh Japee, Technical Analyst.
USDJPY Chart
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。
