USD/JPY Forex Technical Analysis – August 22, 2019 Forecast

On Wednesday, the Forex pair closed higher after the release of the Fed minutes, however, it traded inside the previous session’s range, which indicates investor indecision and impending volatility.
James Hyerczyk

The Dollar/Yen is trading lower on Wednesday as investors begin positioning themselves ahead of Friday’s speech by Federal Reserve Chair Jerome Powell at the central bankers’ symposium at Jackson Hole, Wyoming. Safe-haven buying is also driving investors into the Japanese Yen as they respond to falling Treasury yields and lower demand for risky assets.

At 06:19 GMT, the USD/JPY is trading 106.309, down 0.301 or -0.28%.

On Wednesday, the Forex pair closed higher after the release of the Fed minutes, however, it traded inside the previous session’s range, which indicates investor indecision and impending volatility.


Daily Technical Analysis

The main trend is down according to the daily swing chart. However, the sideways to slightly higher price action since August 12 suggests traders are trying to shift momentum to the upside.

The main trend will change to up on a trade through 109.317. This is highly unlikely, but there is room to complete a normal 50% to 61.8% retracement. A trade through 105.049 will signal a resumption of the downtrend.

The minor trend is also down. A trade through 107.086 will change the minor trend to up. This will also shift momentum to the upside.

The minor range is 105.049 to 106.976. Its 50% level or pivot at 106.013 has been providing support since August 13.

The short-term range is 109.317 to 105.049. Its retracement zone at 107.183 to 107.687 is the primary upside target.

Daily Technical Forecast

Without momentum to guide the trade, the USD/JPY can move in either direction on Thursday.

Bearish Scenario

If momentum shifts to the downside then look for a break into a support cluster formed by an uptrending Gann angle at 106.049 and a short-term pivot at 106.013. We could see a counter-trend bounce on a test of this area. If 106.013 fails as support then look for the selling to possibly extend into the next potential support cluster at 105.567 to 105.549. This is the last potential support area before the 105.049 main bottom.

Bullish Scenario

If momentum shifts to the upside and this creates enough upside momentum then look for buyers to make a run into a series of targets. The first target is the high at 106.976. The second target is the uptrending Gann angle at 107.049. This is followed by the minor top at 107.086 and the 50% level at 107.183.

Needless to say, it’s going to take some big buying volume to take out the resistance.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.