- USDJPY has formed hanging man and shooting star at 113.004 and 113.031 levels respectively amid today's rallies trade as markets nudge trade wars tormentor.
- The current trend is wedged between 7 and 21-SMA after ever since the formation of these bearish patterns (refer 4H charts).
- On intermediate trend, bulls are retracing from the March 2018 bottom of 104.629 levels to the November 2017 highs, will foresee further upside traction upto next 61.8% Fibonacci levels (refer weekly plotting). Price action on this timeframe has bounced back into the long lasting range bounded trend. The pair is currently extending its gains to 6-months highs.
- On the flipside, the major trend has been bearish, but 7-EMA likely to act as the major support at 110.6024 levels. We see bullish invalidation on retrace below.
- Both leading oscillators are signalling healthy bullish momentum on weekly charts and bearish momentum on intraday plotting. We could foresee scope for further upside traction only if it bounces above 7SMAs.
- While trend indicators are substantiating the bullish on weekly terms and bearish swings to prolong further on intraday terms.
- While Yen seems to be losing its safe-haven sentiments as markets seem to trust Trump's move by imposing tariffs on Chinese goods.
Key Support Levels: 112.6268, if it breaks this level then you could see dips upto 112.208 areas that are regarded as next strong support zones.
Trade tips: On trading grounds, it is wise to buy boundary options, with upper strikes at 112.898 and lower strikes at 112.6268.
FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at 45 (which is bullish), while Hourly JPY Spot Index was at 4 (absolutely neutral) at 05:06 GMT.
For more details on FxWirePro's Currency Strength Index, visit below web-link:
