Market Cap:
$263.1B
BTC Dominance:
67.11%
btc:
$9866.29
eth:
$207.67
xrp:
$0.29
Advertise
Forex

USDJPY analysis: Will the pair accelerate further weakness?

Squared Direct | May. 10, 2019
USDJPY analysis: Will the pair accelerate further weakness?

May 10, 2019, | SQUARED DIRECT - The Japanese yen pushed higher during yesterday’s session as the probability of a US-China trade deal is getting slimmer. The broad US Dollar weakness couldn’t help boost the pair either. While trade talks have been extended until today, the planned US Tariff hike on Chinese goods from 10% to 25% took effect earlier in the Asian session.

If both sides again fail to reach a deal today, then Beijing may respond with its own set of tariff hikes, leading to further escalation of the trade war and increased demand for safe-haven currencies like the Yen.

USDJPY technical analysis

USDJPY analysis, Japanese yen

The Dollar/Yen fell towards 109.50 yesterday but managed to close just above a key support level 109.70. Price could consolidate between 110 and 109.70 for a period of time until a break to either side. The market sentiment is bearish thus traders will be more appealed to the anti-risk Yen. A break above 110 could extend the pullback towards 110.30 before continuing its downward trend. However, a break below the 109.50-70 area (February lows) could accelerate further weakness on this pair.

Support: 109.70 / 109.50 / 109.15
Resistance: 110.10 / 110.30

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.