Menu

Search

  |   Technicals

Menu

  |   Technicals

Search

FxWirePro: USD/JPY erases gains, slips below 20-DMA, political uncertainty in Japan weighs

  • Political uncertainty in Japan on Moritomo scandal news weighed on USD/JPY as Nikkei retraces gains.
     
  • USD/JPY edges lower from session highs at 106.97, slips below 20-DMA at 106.65.
     
  • The pair is currently trading at 106.45 levels, down 0.34% on the day.
     
  • Investors await the Bank of Japan’s (BoJ) January monetary policy meeting minutes scheduled for Tuesday.
     
  • Technical studies are turning bullish. RSI and Stochs are biased higher. 5-DMA has turned north.
     
  • Decisive break above 20-DMA could see further upside. Scope then for test of 107.48 (23.6% Fib retrace of 114.737 to 105.250 fall).
     
  • On the downside, break below 5-DMA at 106.32 could see test of 105.15 (major trendline support).

Support levels - 106.32 (5-DMA), 105.15 (trendline), 105

Resistance levels - 106.65 (20-DMA), 107, 107.48 (23.6% Fib)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-USD-JPY-tests-20-DMA-bias-higher-good-to-go-long-on-dips-1193932) has hit TP1/2.

Recommendation: Book partial profits. Watch out for break above 20-DMA for further upside.

FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest

 

  • Market Data
Close

Welcome to EconoTimes

Sign up for daily updates for the most important
stories unfolding in the global economy.