USDJPY Technical Analysis, July 2, 2020

Exclusive Markets Analysts
Exclusive Markets Analysts

USDJPY:


Technical Outlook:

USDJPY had managed to rally past 108.00 handle before pulling back yesterday. We cannot rule out another push through 108.30 levels, before giving in to bears again. The Japanese Yen is expected to remain strong until 109.85 resistance is intact, going forward.

USDJPY had dropped in an impulse wave earlier, between 112.22 and 101.20 levels. A larger degree Wave (1) might be in place and the structure remains valid until 112.22 resistance holds. Going further, the rally towards 111.75 has been corrective A-B-C, Wave (2) on the chart here.

Since 111.75 levels, a larger degree Wave (3) is unfolding and it should terminate below 101.20, going further. Looking into the sub waves within Wave (3) USDJPY might have carved Waves 1 and 2 at 106.00 and 109.85 respectively. Immediate resistance remains at 109.85 and the single currency should stay below that handle to keep the bearish structure intact.

The recent drop between 109.85 through 106.00 is being retraced as we prepare this article. The corrective rally is expected to terminate around 108.30 levels, which is fibonacci 0.618 retracement of the above drop. A bearish reaction remains high probability if prices manage to reach there.

USDJPY remains a good candidate to be sold on rallies towards 108.30 levels. Bottom line: The 109.85 handle should remain intact, going forward.


Trading Strategy:

Look to sell more around 108.30, stop at 109.85, target remains open.


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.

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