USDJPY Daily – Bears dominating the market

Justin Freeman
USDJPY Blocks with two toy men standing in front

Written on 22/06/2020 by Theunis Kruger, FX Trainer at FXTM

The USDJPY currency pair, on the D1 time frame, was in an uptrend until the 5th of June when a higher top was reached at 109.848. Supply overwhelmed demand and the market started declining.

After the higher top at 109.848, the price broke through the 15 and 34 Simple Moving Averages and the Momentum Oscillator crossed the zero baseline into negative terrain.

The downward momentum was confirmed with strong bearish candles that occurred during the break of the Moving Averages.

A possible critical support level formed when a bottom was recorded on the 11th of June at 106.569. Buyers tried to drive the price higher but could not maintain the upward momentum and a lower top formed on June the 16th at 107.637.

If the USDJPY breaks through the critical support level at 106.569, then three possible price targets may be calculated from there.

Applying the Fibonacci tool to the bottom of the support level at 106.569 and dragging it to the top of the resistance level at 107.637, the following targets might be considered.

The first target could be projected at 105.909 (161 %). The second price target might be considered at 104.841 (261.8%), and the third and final target may be expected at 103.113 (423.6%).

If the 107.637 resistance level is broken, the possible scenarios above are invalidated and need to be re-evaluated.

As long as sellers maintain a negative sentiment and supply overcomes demand, the outlook for the USDJPY currency pair on the Daily time-frame will remain bearish.

USDJPY Daily Forex Price Chart

For more information, please visit: FXTM                   

Disclaimer: This written/visual material is comprised of personal opinions and ideas. The content should not be construed as containing any type of investment advice and/or a solicitation for any transactions. It does not imply an obligation to purchase investment services, nor does it guarantee or predict future performance. FXTM, its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness of any information or data made available and assume no liability for any loss arising from any investment based on the same.

Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 80% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.


Justin Freeman

Latest news

Forex vs Crypto: What’s Better For Beginner Traders?
The crypto and forex markets are two of the world’s most popular among investors and traders. Read more
Three Great Technical Analysis Tools for Forex Trading
You don’t have to be very technical minded to make use of technical analysis in your forex trading. Read more

Safest Forex Brokers 2024

Broker Info Best In Customer Satisfaction Score
#1 73% of retail CFD accounts lose money. Founded: 2014 Global Forex & CFD Broker
Number One Broker
Best Trading Conditions Visit broker
4.9
#2 Blackbull LogoYour capital is at risk Founded: 2014 Global Forex Broker
Number One Broker
BEST SPREADS Visit broker
4.8
#3 AvaTrade LogoYour capital is at risk Founded: 2006 Globally regulated broker
Number One Broker
BEST CUSTOMER SUPPORT Visit broker
4.9
#4 plus500 logo 80 april 2024* 80% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money Founded: 2008 Global CFD Provider
Number One Broker
Best Trading App Visit broker
5
#5 Between 74-89 % of retail investor accounts lose money when trading CFDs Founded: 2010 Global Forex Broker
Number One Broker
Low minimum deposit Visit broker
4.9
#6 Forex Broker eToro Logo76% of CFD traders lose money Founded: 2007 Global CFD & FX Broker
Number One Broker
ALL-INCLUSIVE TRADING PLATFORM Visit broker
4.9
#7 XM LogoYour capital is at risk Founded: 2009, 2015 and 2017 Global Forex Broker
Number One Broker
Low minimum deposit Visit broker
5
#8 FxPro LogoYour capital is at risk Founded: 2006 CFD and Cryptocurrency Broker
Number One Broker
CFD and Cryptocurrency Visit broker

    Forex Fraud Certified Brokers

    eToro Logo
    XM Logo
    AvaTrade logo
    BlackBull Logo Small
    FxPro logo
    FXTM Logo
    plus500 logo 80 april 2024
    CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.