FXEMPIRE
All

USD/JPY Forex Technical Analysis – Likely to Straddle 109.371 Fibonacci Level on Light Volume

Based on Monday’s price action and the close at 109.380, the direction of the USD/JPY on Tuesday is likely to be determined by trader reaction to the main Fibonacci level at 109.371.
James Hyerczyk
USD/JPY

The Dollar/Yen closed lower on Monday in thin pre-Christmas trading as many of the major players sat on the sidelines. The price action on Tuesday could be even worse with the U.S. stock and Treasury markets scheduled to close early ahead of Wednesday’s U.S. bank holiday.

Helping to underpin the Forex pair may have been demand for risk with the major U.S. stock indexes hitting record highs. Perhaps putting a lid on the Dollar/Yen was weaker-than-expected U.S. economic data.

On the data front, new home sales in November totaled 719,000, 13,000 less than expected, the U.S. Census Bureau said Monday. Durable goods orders rose 0.1% last month, in line with estimates but down 1.1% from the same month a year ago.

On Monday, the USD/JPY settled at 109.380, down 0.076 or -0.07%.

Daily USD/JPY

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, however, six days of sideways price action has taken some of the wind out of the momentum sail.

A trade through 109.728 will reaffirm the uptrend. The main trend is safe today. It will change to down on a move through 108.430.

The USD/JPY is attempting to establish support on the strong side of a longer-term Fibonacci level at 109.371. The longer-term 50% level support is at 108.434.

The short-term range is 108.430 to 109.707. Its 50% level at 109.069 is additional support. Since the main trend is up, buyers could come in on the first test of this level.

Daily Swing Chart Technical Forecast

Based on Monday’s price action and the close at 109.380, the direction of the USD/JPY on Tuesday is likely to be determined by trader reaction to the main Fibonacci level at 109.371.

Bullish Scenario

A sustained move over 109.371 will indicate the presence of buyers. It’s going to be difficult, but if this move creates enough upside momentum, traders may take a run at 109.707, followed closely by 109.728 and 109.930.

Bearish Scenario

A sustained move under 109.371 will signal the presence of sellers. If this move generates enough downside momentum then look for the move to possibly extend into the short-term 50% level at 109.069. Not only is this level support, but it’s also a potential trigger point for an acceleration to the downside.

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