USD/JPY: 108.000 Still On The Cards

Published date: 28/03/2019
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Good afternoon Traders and welcome back to EverythingFX. 

The US Dollar currently trading at 110.553 against the Japanese Yen during the New York Session.

Following up from the previous article I mentioned we required a break our support at 110.000 where we could see a new leg to the downside however we have bounced off of support fairly well.

Starting on the weekly timeframe we can see price had a massive sell-off last week straight in support. On the daily timeframe, price has formed a fairly bullish rejection where we could see price pulling back higher before heading lower once again. 

Dropping down to a 4-hour timeframe we can see price previously found support at 110.900 where we have now broken through which then turns into resistance. I do expect us to come and tap this new found minor resistance before heading lower. My overall downside target for the pair is 108.000 which is a good 250 PIP trade from the current price. As illustrated on the chart above we could potentially fall from current price action or worst case scenario we get a third rejection of our descending trendline. What would invalidate my short bias is a break of our descending trendline at 111.250 which lead towards our next weekly resistance of 112.000. 

Fundamentally we had US GDP data coming out at 2.2% which came in lower than predicted at 2.4% -this will affect the pair going forward. Stay tuned to our Market News Section as well as our Twitter feed for Live Market news and comments.


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