XM does not provide services to residents of the United States of America.

Technical Analysis – USDJPY advances stumble at near 4-year highs



USDJPY’s one-month rally off 109.19 may be running out of steam in the vicinity of the resistance band of 114.54-114.73, formed between the October 2018 and November 2017 rally peaks. Nonetheless, the climbing simple moving averages (SMAs) are endorsing the bullish picture.

The Ichimoku lines are indicating that positive momentum is growing, while the short-term oscillators are still leaning towards the upside. The MACD, deep in the positive region, is persisting above its red trigger line, while the RSI, which is in overbought territory, is demonstrating a tendency to push higher. Currently, the stochastic lines are tangled above the 80 overbought level, not providing a clear price preference.

In the positive scenario, an immediate obstacle impeding the extension of the one-month rally is the 114.54-114.73 barrier. However, if buyers successfully overstep this slender resistance, upside limitations could arise from the neighbouring boundary of 115.07-115.62, involving multiple highs from mid-January to mid-March of 2017. Should bullish impetus intensify, the price may then propel for the 116.87 and 117.53 highs, identified in January of 2017.

Alternatively, if price gains become capped ahead of the 115.00 handle, preliminary support could develop around the 113.70 - 114.00 region. Dropping below this, upside defences could stem from the 113.00 hurdle, and the 112.22-112.40 boundary, moulded between the highs from April 2019 and February 2020. From here, a deeper price retracement could get snagged around the blue Kijun-sen line at 111.93 before challenging the zone of support between the 111.00 level and the 100-day SMA at 110.46.

Summarizing, USDJPY is sustaining a bullish tone above the 113.00 barrier and the SMAs. For positive forces to flourish, the price would need to pilot past the 115.62 threshold, while a drop beneath the 113.00 handle could start to feed negative price movements.

 

 

Latest News

Technical Analysis – BTCUSD advances towards all-time highs


Technical Analysis – AUDUSD gets bearish vibes

A

Technical Analysis – WTI oil futures in fierce battle with 50.0% Fibo

O

Technical Analysis – GER 40 index marks highs after highs

G

G

Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.

All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.

Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.