Ichimoku analysis (1 -hour chart)
Tenken-Sen- 106.89
Kijun-Sen- 106.98
USDJPY is trading extremely weak and lost nearly 200 pips in the past 2 trading days. The pair have shown major sell-off yesterday on US-EU trade war escalation.US ISM services data also came below expectations at 52.6 in Sep compared to the estimate of 55. The 10-year yield declined further for more than 4% after weak economic data. The pair hits an intraday low of 106.46 and is currently trading around 106.80.
On the flip side, major intraday support is around 106.40 and any violation targets105.80/105. Any major reversal happens only if the pair breaks104.40.
The near term resistance is around 107.20 and any violation above that level targets 107.40/108/108.50. The decline from 112.40 will get over at 104.40 only if the pair breaks up 109.30 level.
It is good to sell on rallies around 107 with SL around 107.40 for the TP of 105.80.
