Market Cap:
$217B
BTC Dominance:
65.87%
btc:
$7,936.14
eth:
$172.40
xrp:
$0.29
Advertise
Forex

USDJPY analysis - Pair attempts recovery above 105

USDJPY analysis - Pair attempts recovery above 105

Having found fresh support near the seven-month low of 105.27 in early Asia, the USDJPY pair attempted a recovery above the 105.50 level, only to run through offers near 105.60 region. 

12 August 2019 | SQUARED DIRECT – The Dollar/Yen has lost some ground as geopolitical issues keep the Yen bulls in favor ahead of a key week on the US Calendar. We have a series of Federal Reserve related events that will include Fed speakers, the Jackson Hole, and the FOMC, US Consumer Price Index and Retail Sales.

Meanwhile, markets are pricing in a 30 bps easing at the 19 September Fed meeting. Equities, on the other hand, are in a risk-on mood, disregarding the US-China trade tensions. This growing divergence between the Yen and equities is once again hinting that a big move is ahead of us, whether it is going to be a bullish or a bearish move, remains to be seen.

USDJPY technical analysis

The Yen bulls took out the recent lows but the divergence between these recent lows and the equities bullish move could temporarily halt the bearish momentum on this pair.

The Dollar bulls could come back in today’s session pushing price back towards 105.85 and possibly even higher if they find enough momentum. However, if the bears take out the recent lows, then 105 will be their next target.

Support: 105.30 / 105
Resistance: 105.85 / 106.50

Chart (H4)

Disclaimer

Trading in Forex and Contracts for Difference (CFDs), which are leveraged products, is highly speculative and involves a high level of risk. Therefore, Forex and CFDs may not be suitable for all investors because it is possible to lose all invested capital. Only invest with money you can afford to lose. Before deciding to trade, you need to ensure that you understand the risks involved. Seek independent advice if necessary. Please refer to our Risk Disclaimer.

Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ Markets.com, nor should they be attributed to AtoZMarkets.

Premium Brokers

Your capital is at risk.