Hello everyone, as we all know the market action discounts everything :)
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The USD/JPY has been having a hard time breaking the 110.540 resistance level after dropping from 111.583 back in July. The market seems to be trading in a triangle pattern and it's getting closer to the end of the pattern where we might see a breakout and a big move in the price.
Different Scenarios for the market :
Scenario 1 :
The market is trading at 109.884 and seems to be having a Green candle today after a big Red one yesterday, showing that the Bulls still have strengths in them to push the market up which will lead the market to reach the first resistance line at 110.12 where the Bears will have to increase pressure to drop the market away from the 110.540 resistance level where the big Bearish power is located right now.
Scenario 2 :
The market has dropped gradually in the last month and the Bears seems to be carving the new trend for the market a bit by a bit, this will lead to the market reaching the first support level at 109.45 soon which would be a sign of a breakout in the trend and the market will change to a Bearish market for this period of time.
Technical indicators show :
The market is below the 5 10 and 50 MA and below the 5 10 EMA But still above the 20 100 200 MA and 20 50 100 200 EMA. This indicates a short-term Bearish movement but for the long term the market is still looking Bullish.
The STOCH is having a negative crossover between %K (48.21) %D (53.34)
The RSI is at 49.72 showing a Neutral state in the market, No divergences were found
Support & Resistance points : support Resistance 1) 109.45 1) 110.12 2) 109.20 2) 110.54 3) 108.77 3) 110.79
Fundamental point of view :
USD/JPY is moving back in on the 108 figure following a firmer performance in the greenback for the first part of the North American session.
At the time of writing, USD/JPY is trading at 109.71, losing some 0.47% after falling from a high of 110.27 and reaching a low of 109.62 on the day.
Meanwhile, the greenback was pressured over the European Central Bank, recovering in the US morning before Treasury yields fell after the US government saw strong demand for a sale of 30-year bonds. According to Fxstreet
This is my personal opinion done with technical analysis of the market price and research online from fundamental analysts for The Fundamental point of view, not financial advice. If you have any questions please ask and have a great day !!