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.
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.
- If Market Manipulation Is Behind The Crypto Price Crash, Is Now The Time To Buy?
- Fake Elon Musk Crypto Giveaway Is Scamming Investors Of Millions
- Musk’s Bid For Twitter Could Be About To Lift The Lid On Tech Sector Valuations – And Not In A Good Way
- Gold H4 – Do the bears stand a chance
- Looking Forward To An Uncertain Few Months
- How To Use ETFs To Trade The Current Market Conditions?
If Market Manipulation Is Behind The Crypto Price Crash, Is Now The Time To Buy?
Safest Forex Brokers 2022
|Broker||Info||Best In||Customer Satisfaction Score|
|#1||Your capital is at risk Founded: 2011||Global CFD & FX Broker||
BEST FOREX BROKER Visit broker
|#2||Your capital is at risk Founded: 2014||Global Forex Broker||
BEST SPREADS Visit broker
|#3||66% of retail CFD accounts lose money Founded: 2014||Global Forex & CFD Broker||
Best Trading Conditions Visit broker
|#4||72 % 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 Broker||
Best Trading App Visit broker
|#5||Your capital is at risk Founded: 2006||Globally regulated broker||
BEST CUSTOMER SUPPORT Visit broker
Stay up to date with the latest Forex scam alerts
Sign up to receive our up-to-date broker reviews, new fraud warnings and special offers direct to your inbox