USDJPY Short Technical Analysis
The pair came under intense selling pressure on news that the Japanese stimulus package might turn-out to be in the tune of 6 trillion Yen, which was well short of market expectations of around 20-30 trillion Yen. The USDJPY pair remained well offered and tipped below 104.00 handle to a fresh session low level but now seems to have found some support at lower level and is currently trading off session through at 104.30 (USDJPY Forex Analysis).
USDJPY Forex Strategies
The US dollar initially rose against the Japanese yen but turned right back around to form a bit of a shooting star during the day on Monday. I believe that there is a significant amount of support below at the 105 level, so I do not anticipate that selling this market is in a be easy to do. In fact, I believe that a supportive candle below will be reason enough to start going long. I believe at that point in time, the market will continue to grind its way towards the 108 level
USDJPY Idea For Long
It’s been a pretty swift correction in USDJPY, which has spent two weeks crawling up from 100 to 107.5. As soon as relative real yields stopped dragging it higher, it dropped back to earth. 103.50 need to hold to keep the bounce looking intact but we still think that the BOJ will deliver easing and this time, it should affect the market (USDJPY Forex Analysis).
USDJPY Forex Analysis
Mohammed Isah, Technical Strategist at FXTechstrategy, notes, “On the downside, support comes in at the 105.00 level where a break if seen will aim at the 104.50 level. A cut through here will turn focus to the 104.00 level and possibly lower towards the 103.50 level. On the upside, resistance resides at the 106.00 level. Further out, we envisage a possible move towards the 106.50 level. Further out, resistance resides at the 107.00 level with a turn above here aiming at the 107.50 level. On the whole, USDJPY looks to weaken further on bear pressure.
USDJPY Updated Levels
The Yen has strengthened overnight to 104.12, exceeding my initial downside target of 104.63 following the rise above 107.20 last week (107.49 intraday high) With the Fed and BoJ conducting their policy meetings Wednesday and Friday of this week respectively, technical levels are likely to be honoured in the meantime. USDJPY currently trades at the 38.2% retracement level connecting the 24th June 98.79 low to the 21st July 107.49 high. According to FX trading desks 103.00 is identified as a potential buy zone for institutional client orders, which is approximately the next retracement level (50% 103.39). ST: Expect a continued retracement towards 103.00-103.20, with support likely around the 61.8% pivot at 102.11 LT: Should 102.11 fail, then confluence around the 100.70 level (78.6% @ 100.65 / 50% @ 100.71)
USDJPY and the other Yen crosses have offered FX traders some of the most remarkable opportunity in terms of trend and volatility amongst the majors through 2016. We will likely continue to the Japanese Yen generating among the most remarkable movement in the currency market moving forward as well. This week alone, the docket will add considerable fuel via the most productive fundamental engine for currency and pair (USDJPY): monetary policy. The BoJ is scheduled to announce its policy bearings on Friday while the US-based Fed will decide on rates Wednesday.