USD/JPY Forex Technical Analysis – June 25, 2019 Forecast

Based on the early trade, the direction of the USD/JPY the rest of the session is likely to be determined by trader reaction to the uptrending Gann angle at 107.102.
James Hyerczyk

The Dollar/Yen is trading at a multi-month low early Tuesday as investors continue to increase bets on a Federal Reserve rate cut at the end of July. While expectations of a Fed rate cut are weakening the U.S. Dollar, safe-haven demand due to worries over U.S.-China trade relations and Middle East tensions are driving up the Japanese Yen.

At 06:02 GMT, the USD/JPY is trading 107.030, down 0.268 or -0.25%.

Asian stock markets are trading lower because investors are starting to believe the meeting between US President Trump and Chinese President Xi Jinping at the G20 summit in Osaka, Japan will be fruitless. This increases the chances of President Trump imposing another $300 billion in tariffs on China.


Daily Technical Analysis

The main trend is down according to the daily swing chart. The downtrend was reaffirmed earlier today when sellers took out last week’s low at 107.045. Due to an intraday technical bounce, the downtrend will resume later today if 106.775 is taken out.

The main trend will change to up on a trade through 108.728. This is highly unlikely however.

Traders should also watch the market’s reaction to 107.298, 107.310 and 107.305. These are the last three closes. Closing over these levels will likely indicate the worst of the selling is over.

The main range is 105.180 to 112.405. Its retracement zone at 107.940 to 108.793 is controlling the direction of the USD/JPY. Consider it resistance.

Daily Technical Forecast

Based on the early trade, the direction of the USD/JPY the rest of the session is likely to be determined by trader reaction to the uptrending Gann angle at 107.102.

Bearish Scenario

A sustained move under 107.102 will indicate the presence of sellers. If this move is able to generate enough downside momentum then we could see a test of the next uptrending Gann angle at 106.141 over the near-term.

Bullish Scenario

A sustained move over 107.102 will signal the return of buyers. This could lead to a test of the three previous closes at 107.298, 107.310 and 107.305.

Overtaking the closes should create the upside momentum needed to challenge the downtrending Gann angle 107.552. This angle is important because it has been guiding the USD/JPY lower since May 21. Overcoming this angle could shift sentiment to the upside with the next target the Fibonacci level at 107.940.

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.