USD/JPY Forex Technical Analysis – April 24, 2019 Forecast

The Dollar/Yen is trading lower early Wednesday despite the strong performance in U.S. equity markets on Tuesday and increased appetite for risk in Asia today. A decline in U.S. Treasury yields may be contributing to the weakness, but most of the selling is pressure is likely coming from position-squaring ahead of the release of the Bank of Japan Outlook Report, Monetary Policy Statement and interest rate decision on Thursday.

At 04:23 GMT, the USD/JPY is trading 111.822, -0.038 or -0.03%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 112.170 will signal a resumption of the uptrend. The main trend will change to down on a trade through 110.843.

The short-term range is 110.843 to 112.170. If the selling pressure continues through 111.650 then look for a move into its retracement zone at 111.507 to 111.350.

Daily Technical Forecast

Based on the early price action, the direction of the USD/JPY on Wednesday is likely to be determined by trader reaction to the downtrending Gann angle at 111.858.

Bullish Scenario

A sustained move over 111.858 will indicate the presence of buyers. This could trigger a surge into the next downtrending Gann angle at 112.014.

Overtaking 112.014 will indicate the buying is getting stronger. The next target is the steep uptrending Gann angle at 112.093. Overtaking this angle will put the USD/JPY in a bullish position with the main top at 112.170 the next target.

Taking out 112.170 could trigger an acceleration to the upside.

Bearish Scenario

A sustained move under 111.858 will signal the presence of sellers. The first downside target is yesterday’s low at 111.650. If this fails then look for the selling to extend into the short-term 50% level at 111.507 and the uptrending Gann angle at 111.468.

Since the main trend is up according to the daily swing chart, look for buyers to re-emerge on a test of 111.507 to 111.468.