Market Cap:
$233B
BTC Dominance:
65.70%
btc:
$8,479.62
eth:
$181.28
xrp:
$0.26
Advertise
Forex

USDJPY analysis - Will the bears break below 108?

USDJPY analysis - Will the bears break below 108?

The US dollar has pulled back from the 109.00 level against the Japanese yen currency, following bearish comments from President Trump towards Sino-US trade talks.

July 31, 2019 | SQUARED DIRECT – The Dollar was stable against the Yen yesterday until Trump attacked China over trade talks in a series of tweets, which also made equities to fall. On the other hand, the Bank of Japan had a monetary policy meeting earlier this morning spiced with some dovish comments, as it indicated that policymakers won’t hesitate to take additional easing measures “if there is a greater possibility that the momentum towards achieving the price stability target will be lost.”

The current market sentiment is mixed as traders are eagerly waiting for the most anticipated FOMC rate decision in a decade. A 25bps rate cut will likely be positive for the Dollar, boosting it towards 109 and possibly above. However, a deeper cut could shock the market and traders will likely drop the greenback towards the June lows.

USDJPY technical analysis

The pair continues to consolidate between 108.45 and 108.75, as the bulls and the bears are fighting to take control. Recently, the buyers have been subdued below 109 since May, as every time they try to challenge that level, the bears will show up and push it lower. Today’s FOMC could be in the Dollar’s favor as the buyers will finally have the opportunity to break higher. In contrast, if the bears break below 108, we will likely see a revisit of June lows.

Support: 108.45 / 108.30 / 108
Resistance: 108.75 / 109 / 109.20

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.