USDJPY Technical Analysis, July 16, 2020

Exclusive Markets Analysts
Exclusive Markets Analysts


USDJPY:


Technical Outlook:

USDJPY might be preparing to rally towards 108.30/40 levels, before reversing lower again. The currency had slipped below the 107.00 handle yesterday but bulls remain poised to push higher over the short term. The 106.00 interim support should hold for above structure to remain intact.

The wave structure since 111.75 is suggesting that USDJPY might have carved Waves A and B of a corrective drop A-B-C lower. Wave A potential termination was seen towards 106.00 while Wave B rallied through 109.85, the fibonacci 0.618 retracement of Wave A.

USDJPY needs to stay below 109.85 levels, to keep the above structure intact. A break above 109.85 would indicate that bulls are back in control and the currency is heading further north towards 112.22 levels, going further.

In the immediate short term, probability remains for a push higher towards 108.30/40 at least. Please note that the fibonacci 0.618 retracement of recent drop between 109.85 and 106.00 is also passing through 108.30. High probability remains for a bearish reversal if prices manage to reach there.

Alternately, if prices drop below 106.00 mark, USDJPY would be pushing further lower towards 105.00 at least, before finding some support. Probabilities for the alternate count remains less though. In the short term, a sharp rally towards 108.30 remains possible.

The short term wave counts suggests USDJPY might have carved lower degree wave I around 106.00 mark. It might terminate wave ii around 108.30, before proceeding lower towards 105.00 as Wave iii unfolds.


Trading Strategy:

Long against 106.00 targeting 108.30/40 in the short term.


Legal Disclaimer: This article is not investment advice. The data provided is for marketing material purposes and is not intended to confuse nor guide our clients on trading decisions. Any investment activity performed is perceived to be a self-directed decision. Exclusive Markets is not liable for losses that may occur because of a decision made after reading the information published on our research page or any other media.

Risk Warning: Trading the capital markets is risky therefore further knowledge and experience may be required. Apply appropriate risk and money management always and ensure the implementation of safe leverage.

Legal Disclaimer: This article is not investment advice. The data provided is for marketing material purposes and is not intended to confuse nor guide our clients on trading decisions. Any investment activity performed is perceived to be a self-directed decision. Exclusive Markets is not liable for losses that may occur because of a decision made after reading the information published on our research page or any other media.

Risk Warning: Trading the capital markets is risky therefore further knowledge and experience may be required. Apply appropriate risk and money management always and ensure the implementation of safe leverage.

Share this post    

Share on facebook
Share on twitter
Share on linkedin
Share on email