FXEMPIRE
All
Ad
Corona Virus
Stay Safe, FollowGuidance
World
43,004,049Confirmed
1,155,558Deaths
31,709,367Recovered
Fetching Location Data…
Advertisement
Advertisement
James Hyerczyk
USD/JPY

The Dollar/Yen rallied on Friday, pushing through potential resistance to hit its best level since September 15. The Forex pair has now recovered more than 50% of its break from August 13 to September 21.

Driving investors into the greenback were worries about a slowing economic recovery, rising coronavirus infections in Europe, uncertainty about U.S. stimulus, and the upcoming U.S. presidential elections.

On Friday, the USD/JPY settled at 105.557, up 0.133 or +0.13%.

With five straight days of gains against Japan’s Yen, the greenback showed its strongest weekly gain versus the Yen since early June.

Daily USD/JPY

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. However, momentum shifted to the upside on September 21 with the formation of a closing price reversal bottom.

The main trend will change to up on a trade through 107.049. A move through 104.002 will negate the closing price reversal bottom and signal a resumption of the downtrend.

A trade through last week’s high at 105.701 will indicate the counter-trend buying is getting stronger.

The main range is 107.049 to 104.002. The USD/JPY is currently testing its retracement zone at 105.526 to 105.885. Trader reaction to this zone should determine the near-term direction of the Forex pair.

The new minor range is 104.002 to 105.701. A break under the 50% level at 105.526 could lead to a test of its 50% level at 104.852.

Advertisement

Short-Term Outlook

The first objective of the counter-trend really was met on Friday with a trade through the 50% level at 105.526. Trader reaction to this level will set the tone early next week.

Bullish Scenario

A sustained move over 105.526 will indicate the presence of buyers. The first target is last week’s high at 105.701. This is followed by the Fibonacci level at 105.885. This level is a potential trigger point for an acceleration to the upside with targets coming in at 106.550 to 107.049.

Bearish Scenario

A sustained move under 105.526 will signal the presence of sellers. If this creates enough downside momentum then look for a test of 104.852.

If the USD/JPY is going to rally over the near-term then buyers are going to have to start coming in on a pullback into 104.852. At some point, a secondary higher bottom will have to be built.

For a look at all of today’s economic events, check out our economic calendar.

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

Trade With A Regulated Broker

  • Your capital is at risk
IMPORTANT DISCLAIMERS
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.
RISK DISCLAIMER
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.
FOLLOW US