USD/JPY Forex Technical Analysis – Strengthens Over 108.985, Weakens Under 107.598

Based on the early price action and the current price at 108.773, the direction of the USD/JPY the rest of the session on Thursday is likely to be determined by trader reaction to the downtrending Gann angle at 107.598.
James Hyerczyk

The Dollar/Yen is trading flat early Thursday for a second session on light volume as traders continue to try to gauge investor sentiment. In other words, uncertainty as to whether we’re in a “risk-on” or “risk-off” environment is helping to hold prices in a tight range.

Earlier in the week, stocks rallied on the back of the announcement of a partial trade deal between the United States and China on Friday, robust U.S. earnings reports and optimism over a Brexit deal. However, the rally came to a halt and the trading ranges tightened as concerns were raised over U.S.-China trade relations, optimism over Brexit faded and the chances of a Fed rate cut rose after the U.S. reported weaker-than-expected retail sales.

At 02:53 GMT, the USD/JPY is trading 108.773, up 0.013 or +0.01%.


Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through Tuesday’s high at 108.899 will signal a resumption of the uptrend. A trade through 106.485 will change the main trend to down. This is highly unlikely, however, the Dollar/Yen is up 10 sessions from its last main bottom, which puts the Forex pair inside the window of time for a potentially bearish closing price reversal top.

The main range is 109.317 to 104.463. Its retracement zone at 107.463 to 106.890 is support. This zone is also controlling the near-term direction of the USD/JPY.

Daily Technical Forecast

Based on the early price action and the current price at 108.773, the direction of the USD/JPY the rest of the session on Thursday is likely to be determined by trader reaction to the downtrending Gann angle at 107.598.

Bullish Scenario

A sustained move over 107.598 will indicate the presence of buyers. If this move can create enough upside momentum to sustain the rally then look for buyers to make a run at the uptrending Gann angle at 108.985.

Overtaking 108.985 will indicate the buying is getting stronger. This could trigger a rally into another uptrending Gann angle at 109.213. Crossing to the strong side of this uptrending Gann angle will put the USD/JPY in a bullish position with the main top at 109.317 the next likely upside target.

Bearish Scenario

The inability to overcome 108.985 will signal the presence of sellers, but a break under the downtrending Gann angle at 107.598 could trigger an acceleration to the downside with the next potential downside target an uptrending Gann angle at 107.735.

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.