USD/JPY Forex Technical Analysis – June 28, 2019 Forecast

Based on the early price action, the direction of the USD/JPY is likely to be determined by trader reaction to the short-term uptrending Gann angle at 107.525. Keep an eye on trader reaction on a text of the pivot at 107.468. The short-term range will balance at this price. The two day rally earlier this week was formed by shorts bailing out so if new buyers are going to come in, it will probably be on a test of 107.468.
James Hyerczyk
USD/JPY

The Dollar/Yen is trading lower on Friday as investors take safe-haven protection ahead of the key meeting between U.S. President Donald Trump and Chinese President Xi Jinping on Saturday at the G-20 summit in Osaka, Japan. The outcome of the meeting is a toss-up which is encouraging investors to seek safety in the Japanese Yen.

At 07:48 GMT, the USD/JPY is trading 107.641, down 0.147 or -0.14%.

Looking ahead, if the leaders of the two economic powerhouses agree to restart negotiations then look for the USD/JPY to explode to the upside next week. If they walk away with no deal in place then we’re looking at further downside action.

Daily USD/JPY

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through 106.775 will signal a resumption of the downtrend. The main trend will change to up on a move through 108.728.

The minor trend is also down. A trade through 108.161 will change the minor trend to up. This will also shift momentum to the upside.

The minor range is 106.775 to 108.161. Its 50% level or pivot at 107.470 is potential support.

The major retracement zone that is controlling the direction of the USD/JPY is 108.703 to 107.940. Continuing to trade on the weak side of this zone will help maintain the bearish outlook. Trading inside this zone will neutralize the near-term outlook.

Daily Technical Forecast

Based on the early price action, the direction of the USD/JPY is likely to be determined by trader reaction to the short-term uptrending Gann angle at 107.525.

Bullish Scenario

A sustained move over 107.525 will indicate the presence of aggressive counter-trend buyers. They are going to try to form a secondary higher bottom. If this creates enough upside momentum then look for a drive into the major Fibonacci level at 107.940. Overcoming this level will indicate the buying is getting stronger. Overtaking a steep uptrending Gann angle at 108.275 will put the USD/JPY in a bullish position.

Bearish Scenario

A failure to hold the angle at 107.525 will signal the presence of sellers. Breaking the pivot at 107.468 will indicate the selling is getting stronger. This could trigger a further break into the next uptrending Gann angle at 107.150. This is the last major support before the 106.775 main bottom.

Overview

Keep an eye on trader reaction on a text of the pivot at 107.468. The short-term range will balance at this price. The two day rally earlier this week was formed by shorts bailing out so if new buyers are going to come in, it will probably be on a test of 107.468.

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