USDJPY Daily – Bears dominating the market

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 5^th 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 11^th 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 16^th 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.

About the author: Justin Freeman

Justin is an active trader with more than 20-years’ industry experience of working for big banks and hedge funds. He has an inside knowledge of how the financial markets work, thanks to roles including trader on a $750m Event-Arbitrage desk and CRO and COO of hedge funds running a variety of strategies. From stat-arb and trend-following CTA to fixed-income relative value. Firm’s he has worked at include big banks like Citi, and prominent hedge funds including D. E. Shaw and Millennium Capital Management.

Share

Tweet

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	Best Trading Conditions Visit broker	4.9
#2	Your capital is at risk Founded: 2014	Global Forex Broker	BEST SPREADS Visit broker	4.8
#3	Your capital is at risk Founded: 2006	Globally regulated broker	BEST CUSTOMER SUPPORT Visit broker	4.9
#4	81% 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	Best Trading App Visit broker	5
#5	Between 74-89 % of retail investor accounts lose money when trading CFDs Founded: 2010	Global Forex Broker	Low minimum deposit Visit broker	4.9
#6	76% of CFD traders lose money Founded: 2007	Global CFD & FX Broker	ALL-INCLUSIVE TRADING PLATFORM Visit broker	4.9
#7	Your capital is at risk Founded: 2009, 2015 and 2017	Global Forex Broker	Low minimum deposit Visit broker	5
#8	Your capital is at risk Founded: 2006	CFD and Cryptocurrency Broker	CFD and Cryptocurrency Visit broker

Forex Fraud Certified Brokers

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.