USD/JPY Forex Technical Analysis – Buyers Targeting 108.478 Main Top

Based on the early price action and the current price at 108.219, the direction of the USD/JPY the rest of the session on Tuesday is likely to be determined by trader reaction to the downtrending Gann angle at 107.713.
James Hyerczyk
USD/JPY

The Dollar/Yen is trading higher early Tuesday as the upside momentum continues due to the favorable interest rate differential between U.S. Government bond yields and Japanese Government bond yields. The price action suggests that investors are expecting the U.S. Federal Reserve to hit the pause button on a rate cut at its October 29-30 policy meeting and for the Bank of Japan to cut rates and provide other forms of stimulus.

At 03:36 GMT, the USD/JPY is trading 108.219, up 0.157 or +0.14%.

Daily USD/JPY

Daily Technical Analysis

The main trend is down according to the daily swing chart. However, momentum is trending higher. A trade through 108.478 will change the main trend to up. A move through 106.963 will signal a resumption of the downtrend.

The short-term range is 108.478 to 106.963. Its retracement zone at 107.899 to 107.721 is potential support. Trading on the strong side of this zone is helping to generate an upside bias.

The main range is 109.317 to 104.463. Its retracement zone at 107.463 to 106.890 is the key support controlling the near-term direction of the Forex pair.

Daily Technical Forecast

Based on the early price action and the current price at 108.219, the direction of the USD/JPY the rest of the session on Tuesday is likely to be determined by trader reaction to the downtrending Gann angle at 107.713.

Bullish Scenario

A sustained move over 107.713 will indicate the presence of buyers. If this creates enough upside momentum then look for the rally to possibly extend into the main top at 108.478, followed by another downtrending Gann angle at 108.645. This is the last potential resistance angle before the 109.317 main bottom.

Bearish Scenario

A sustained move under 107.713 will signal the presence of sellers. This could trigger a labored break with potential support levels coming in at 107.899, 107.721 and an uptrending Gann angle at 107.713. This is a major support angle.

If 107.713 fails then we could see the start of a near-term correction. The first target is 107.463. If this fails then look for an acceleration to the downside with potential targets coming in at 106.963 and 106.890.

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
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