FxWirePro: USD/JPY trades above as risk appetite improved, good to buy on dips
USD/JPY shown a mild decline after a gap up yesterday. The pair jumped till 110.51 and is currently trading around 110.12. Market awaits tax reform of Donald trump on Wednesday for further direction. It is expected that …
USD/JPY shown a mild decline after a gap up yesterday. The pair jumped till 110.51 and is currently trading around 110.12.
Market awaits tax reform of Donald trump on Wednesday for further direction. It is expected that trump would seek to lower corporate tax to 15%from 35%. JPY trades lower after risk appetite has diminished after first round of French election.
The pair upside is capped by daily Kijun-Sen (110.51) and any break above will take the USD/JPY till 111.45 (100 –day EMA)/112.
The near term support is around 109.59 (38.2% retracement of 108.13 and 110.51) and any break below targets 109.
Short term bullish invalidation only below 108 and any break below will drag the pair down till 106.35 (61.8% retracement of 98.78 and 118.66)/105.
The momentum indicators like MACD and RSI is showing buy signal in the daily chart.
It is good to buy on dips around 109.95-110 with SL around 109 for the TP of 112.
