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.
- EUR/GBP Eyeing 0.9282 Level on the Forex Price Charts
- NZD/USD Looking at 0.6503 Support, US Debate on Cards
- GBP/USD Will Struggle To Hit 1.30 Point, Say Analysts
- Stagnation for EUR/AUD as 1.6590 level proves crucial
- AUD/USD in the 0.7350 Region, Jobs Data in the Spotlight
- EUR/USD close to 1.1737 – what’s next for the euro?
EUR/GBP Eyeing 0.9282 Level on the Forex Price Charts
NZD/USD Looking at 0.6503 Support, US Debate on Cards
Safest Forest Brokers 2020
|Broker||Info||Best In||Customer Satisfaction Score|
|#1||Your capital is at risk Founded: 2012||Global CFD and FX broker||
Best FOREX BROKER Visit broker
|#2||Your capital is at risk Founded: 2012||Global Forex Broker||
Best Trading App Visit broker
|#3||Your capital is at risk Founded: 2010||Global Forex Broker||
Low minimum deposit Visit broker
|#4||Your capital is at risk Founded: 2006||Globally regulated broker||
BEST CUSTOMER SUPPORT Visit broker
|#5||Your capital is at risk Founded: 2014||Global Forex Broker||
BEST SPREADS 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