As the USDJPY pair has repeatedly failed in the last 48 hours, what level does it currently trade on? Peer into the 17 January USDJPY Technical Outlook and find out.
17 January, GKFX– The USD/JPY bears ran out of steam early today as prices neared 110.15 (61.8% Fib R of Sep. low-Nov. high), allowing for a corrective move higher.
- Sellers ran out of steam near 61.8% Fib.
- USD/JPY needs to hold above 1-hour 50-MA.
The currency pair cut through the 1-hour 50-MA level of 110.63 and was last seen trading at a session high of 110.80. It is worth noting that the pair has repeatedly failed in the last 48 hours to cut through offers around 1-hour 50-MA.
Thus, a convincing break above the key moving average could see a technical correction gather pace. The moving average seems to have shed the bearish bias (is bottoming out). Also, analysts believe the markets are overpricing the probability of near-term BOJ tightening and the BOJ is more likely to reiterate its ultra-easy stance. So, Yen could give up its gains. Hence, the spot may hold above 1-hour 50-MA this time.
However, fears of the government shutdown in the US and flat action in the treasury yields could cap upside in the pair.
17 January USDJPY Technical Outlook
A move above 110.95 (23.6% Fib R of Jan. 8 high-Jan. 17 low) would open doors for 111.41 (38.2% Fib R of Jan. 8 high – Jan. 17 low) and 111.65 (Oct. 16 low). On the downside, support at 110.32 (Jan. 15 low) and 110.15 (61.8% Fib R of Sep. low-Nov. high) could be put to test if the bulls fail to defend the 1-hour 50-MA of 110.64.
This article “17 January USDJPY Technical Outlook” was written by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.
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