USD/JPY REACHED THE HIGHEST LEVEL SINCE MARCH 2020
The US dollar traded higher against all the other major currencies on Tuesday and Wednesday. The most currencies it outperformed are GBP, NZD, and AUD, while it eked out the least gains versus EUR.
The rally of the US dollar across the board, especially against the commodity-linked currencies Aussie and Loonie and against the pound, which has been acting as a risky asset lately, suggests that market sentiment deteriorated again yesterday. Indeed, turning our gaze to the equity world, we see that major global indices were a sea of red, tumbling on average nearly 2%, as US Treasury yields kept marching north. The only exception was Hong Kong’s Hang Seng, which is up 0.51%.
The US dollar continues to show plenty of strength against pretty much everything, and that, of course, includes the Japanese yen. With that being the case, it looks like that the price is threatening the ¥112 level now, which key resistance level and the highest level since March 2020.
If the upside continues, USD/JPY will likely challenge 112.00 above, and the next level to watch is 2018 high at around 114.00, followed by the 2017 high at 115.00 or far away on the north at levels around 118.00, which is so optimistic in a short term projection. As seen, the area between 112.00 and 112.40 is a long-term barrier. A consolidation above should clear the way to more gains.
On the flip side, levels around 109.00 are the immediate support on a weekly chart, and a slide below could point to some stabilization in the mid-term. The next strong support stands at 104.50.
Looking at our oscillator indicators, we have to notice that MACD formed convergence on the weekly chart, and some price action signal on a minor chart will activate the bears to take into the market.
Risk Disclosure: Trading Foreign Exchange (Forex) and Contracts of Difference (CFD's) carry a high-risk level. By registering and signing up, any client affirms their understanding of their own personal accountability for all transactions performed within their account and recognizes the risks associated with trading on such markets and such sites. Furthermore, one understands that the company carries zero influence over transactions, needs, and trading signals. Therefore, it cannot be held liable nor guarantee any profits or losses.
The rally of the US dollar across the board, especially against the commodity-linked currencies Aussie and Loonie and against the pound, which has been acting as a risky asset lately, suggests that market sentiment deteriorated again yesterday. Indeed, turning our gaze to the equity world, we see that major global indices were a sea of red, tumbling on average nearly 2%, as US Treasury yields kept marching north. The only exception was Hong Kong’s Hang Seng, which is up 0.51%.
The US dollar continues to show plenty of strength against pretty much everything, and that, of course, includes the Japanese yen. With that being the case, it looks like that the price is threatening the ¥112 level now, which key resistance level and the highest level since March 2020.
If the upside continues, USD/JPY will likely challenge 112.00 above, and the next level to watch is 2018 high at around 114.00, followed by the 2017 high at 115.00 or far away on the north at levels around 118.00, which is so optimistic in a short term projection. As seen, the area between 112.00 and 112.40 is a long-term barrier. A consolidation above should clear the way to more gains.
On the flip side, levels around 109.00 are the immediate support on a weekly chart, and a slide below could point to some stabilization in the mid-term. The next strong support stands at 104.50.
Looking at our oscillator indicators, we have to notice that MACD formed convergence on the weekly chart, and some price action signal on a minor chart will activate the bears to take into the market.
Risk Disclosure: Trading Foreign Exchange (Forex) and Contracts of Difference (CFD's) carry a high-risk level. By registering and signing up, any client affirms their understanding of their own personal accountability for all transactions performed within their account and recognizes the risks associated with trading on such markets and such sites. Furthermore, one understands that the company carries zero influence over transactions, needs, and trading signals. Therefore, it cannot be held liable nor guarantee any profits or losses.