USD/JPY has no technical support
The US Dollar has followed the technical patterns against the Japanese Yen. Namely, the pair has bounced off the upper trend line of a dominant pattern and passed below the support of a junior ascending channel.
On Monday the rate was facing a strong resistance level a t the 110.70 level. There three SMAs together with a Fibonacci retracement level and the weekly PP. It is highly unlikely that this level will be broken.
Instead, the pair is more likely set to decline as low as the weekly S1 at the 110.50 mark. Afterwards, the weekly S2 at 110.23 should be targeted.
On Monday the rate was facing a strong resistance level a t the 110.70 level. There three SMAs together with a Fibonacci retracement level and the weekly PP. It is highly unlikely that this level will be broken.
Instead, the pair is more likely set to decline as low as the weekly S1 at the 110.50 mark. Afterwards, the weekly S2 at 110.23 should be targeted.
Comment:
The USD/JPY has revealed a wide descending channel. The event has taken place during the recent sharp waves of volatility caused by fundamental events.
From one side we have the USD surging due to the announcement that the FED will continue to decrease the USD supply throughout this year. On the other hand, the JPY was gaining value as a safe haven currency as soon as the Pakistani and Indian governments started shooting down each other's planes.
Meanwhile, a technical cluster of support levels at 110.80 was providing the needed strength for a surge, which could reach 111.00 by the end of the day's trading.
From one side we have the USD surging due to the announcement that the FED will continue to decrease the USD supply throughout this year. On the other hand, the JPY was gaining value as a safe haven currency as soon as the Pakistani and Indian governments started shooting down each other's planes.
Meanwhile, a technical cluster of support levels at 110.80 was providing the needed strength for a surge, which could reach 111.00 by the end of the day's trading.
Comment:
The USD/JPY has made another large fundamental move. The rate has suddenly surged, breaking all the previously used pattern trend lines.
Although, our forecast had described a surge that would occur from the 110.80 level. If one would have used properly trailing stop losses, he should still be in a profitable position that caught the whole move.
In regards to the near term future, the pair is expected to reach for the 112.00 level, where it would test the psychological resistance of this round level.
Although, our forecast had described a surge that would occur from the 110.80 level. If one would have used properly trailing stop losses, he should still be in a profitable position that caught the whole move.
In regards to the near term future, the pair is expected to reach for the 112.00 level, where it would test the psychological resistance of this round level.
Comment:
The USD/JPY has reached the 112.00 level, as it was forecast on Friday. The 112.00 level is providing resistance to the currency exchange rate and has forced it into retracing back downwards three times.
The rate most likely will make another attempt to pass the 112.00 level as soon as the 55-hour SMA approaches it from below. It will signal that the pair has ended its consolidation of the recent surge and it can resume its future movement.
In the meantime, take into account that it is still possible that a decline occurs. It would occur in the case of the rate passing the support of the 55-hour SMA.
The rate most likely will make another attempt to pass the 112.00 level as soon as the 55-hour SMA approaches it from below. It will signal that the pair has ended its consolidation of the recent surge and it can resume its future movement.
In the meantime, take into account that it is still possible that a decline occurs. It would occur in the case of the rate passing the support of the 55-hour SMA.
In general, the pair was heading for the support of the weekly S2 at the 110.23 level. That level should be reached during this trading session. If the S2 gets passed easily, the rate will head next to the weekly S3 at 110.00.
However, the simple moving averages would be left too far above the current rate, which would indicate that the rate is oversold.