USDJPY Daily – Bulls gaining momentum

Theunis Kruger

By Theunis Kruger, FX Trainer at FXTM

The USDJPY currency pair on the D1 time-frame was in a downtrend until July the 31st when a lower bottom was reached at 104.177. The appealing price of 104.77 attracted buyers.

Subsequently, the bears were overthrown as the price was propelled upwards, and the momentum caused the market to breach both the 15 and 34 Simple Moving Averages eventually. The Momentum Oscillator also crossed the zero baseline into positive territory. That is an indication to technical traders that a possible new uptrend is in progress.

A higher top and possible critical resistance level formed on August the 13th at 107.039 and bears are currently trying to exert pressure to the USDJPY pair. If the pair breaks through the critical resistance level at 107.039, then three possible price targets may be calculated from there.

Applying the Fibonacci tool to the top of the resistance level at 107.039 and dragging it to the bottom of a possible support level near the 15 Simple Moving Average at 106.068, the following targets could be considered. The first target can be projected at 107.639 (161 %) and the second price target is likely to be at 108.609 (261.8%). The third and final target may be expected at 110.180 (423.6%) if the uptrend continues.

If the 106.068 support level is reached, the bullish scenario above is invalidated and will need to be reassessed.

As long as buyers maintain a positive sentiment and demand overwhelms supply, the outlook for the USDJPY currency pair on the Daily time-frame will remain bullish.









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.

Theunis Kruger

Latest news

Crude Oil Daily – Uptrend in progress
The Crude oil market, on the D1 time frame, was in a short downtrend until the 2nd of November when a lower bottom was reached at 33. Read more

Safest Forest Brokers 2020

Broker Info Best In Customer Satisfaction Score
#1 ForexTime LogoYour capital is at risk Founded: 2012 Global CFD and FX broker
Number One Broker
Best FOREX BROKER Visit broker
#2 Your capital is at risk Founded: 2012 Global Forex Broker
Number One Broker
Best Trading App Visit broker
#3 Forex Broker Pepperstone LogoYour capital is at risk Founded: 2010 Global Forex Broker
Number One Broker
Low minimum deposit Visit broker
#4 Your capital is at risk Founded: 2006 Globally regulated broker
Number One Broker
#5 BlackBull MarketsYour capital is at risk Founded: 2014 Global Forex Broker
Number One Broker
BEST SPREADS Visit broker

    Forex Fraud Certified Brokers

    LegacyFX Small Logo
    OctaFX Logo
    City Index Logo
    Pepperstone Logo
    ATFX Logo
    FXTM Logo
    XM Logo
    BlackBull Markets Small Logo
    skilling logo
    IQ Option Logo
    Oanda Small Logo
    HYCM Logo
    Exness Small Logo
    Plus500 Small Logo