The US dollar continues to trade above the pivotal 107.00 level against the Japanese yen despite global equity markets turning lower. The technicals for the USDJPY pair still point to more upside while price holds above the 107.00 to 107.10 support zone. The breakout above the 107.50 level in the short-term is likely to push the USDJPY pair towards the 108.10 resistance area.
The USDJPY pair is bullish while trading above the 107.00 level, key resistance is found at the 108.10 and 108.30 levels. The USDJPY pair is only bearish while trading below the 107.00 level, key technical support is found at the 106.40 and 106.00 levels.
I find some similarities between usd/jpy and Bitcoin, Maybe my analysis can gain for you some extra points... cheers!
OctaFX_Official
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@josque, hi and thank you for your comment.
The similarities in assets are based on Sentiment and the USD.
The Japanese yen is a safe haven currency, so when investors and money managers see risk increasing around the globe or in certain major economies, they move their money into the yen and the Swiss franc.
Similarly, money managers are seeing increased liquidity in BTCUSD, so can create more Alpha in that market short term than maybe in the yen, Gold or chf. Retail traders are keen to see BTCUSD moon, so getting more people to buy into the rally in BTCUSD is easy. I would imagine an increase in volume at these current levels is asset managers selling their positions into any rally. Hence why the price of BTCUSD is going sideways on your chart. If you follow JPY for risk, also follow DXY for overall USD strength and weakness. If you see Risk or $ weakness, you should expect to see a move in BTCUSD
josque
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@OctaFX_Official, also, I'de like to mention, the Asian dominancy at the bitcoin and crypto market, they are invested in the USD and in times of bearish scenario, USD is getting sell against the JPY, and with thous JPY, big massive of crypto is bought.
DXY in the monthly chart is just finished his impulse last wave and getting started the correction, or in other words, it's getting weak.
This is why the similarities occur.
OctaFX_Official
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@josque, before we get to carried away with the importance of BTCUSD within the Asian markets, I think it's important to say that the overall amount of FIAT money in the world is $86.5 Trillion and the Cryptosphere is worth around $112 Billion. If anything is going to move the BTCUSD it will be the USD or sentiment
OctaFX_Official
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@OctaFX_Official, sorry cryptosphere is approx 202Billion , BTC is 112B of that