USDJPY analysis - Will the pair meltdown towards 107?

July 18, 2019 | SQUARED DIRECT - The Japanese currency was favored against the greenback after disappointing US housing data. The anti-risk Yen was also benefited by renewed concerns about the trade war between the US and China, which fueled demand for safe-haven assets. US 10-year yields fell along with the equities putting additional pressure on the pair.

Earlier this morning, Japan released a lackluster imports/exports data, adding more fear and uncertainty towards the state of the global economy. Further appreciation in the Yen is very much likely, as traders will keep an eye on the performance of US equities as they can act as a leading indicator.

USDJPY technical analysis

The Dollar/Yen broke below 107.80 yesterday, currently holding above 107.60, which is a key support level. The pair could face a significant meltdown towards 107.05 if the bears find the appropriate momentum to break below it. On the other hand, the bulls need to regain their strength and try to push price higher above 107.80 once again to halt this recent bearish momentum.

Support: 107.60 / 107.05
Resistance: 107.80 / 108.1

Chart (H4)

USDJPY analysis


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.

Leave a Reply

Your email address will not be published. Required fields are marked *