USDJPY Daily – Bulls gaining momentum

Theunis Kruger
Yen and USD symbols in a circle made of arrows

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.

USDJPY Daily 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.

Theunis Kruger

Latest news

The New Crypto Scams To Look Out For After ‘The Merge’
After six years of delays, Ethereum’s ‘The Merge’ has finally been completed. Read more
Online Influencer And $55m Disappear In Social Media Forex Scam
Thai social media influencer “Nutty” is alleged to have carried out one of the biggest ever forex scams. Read more

Safest Forex Brokers 2022

Broker Info Best In Customer Satisfaction Score
#1 AvaTrade LogoYour capital is at risk Founded: 2006 Globally regulated broker
Number One Broker
#2 BlackBull Markets LogoYour capital is at risk Founded: 2014 Global Forex Broker
Number One Broker
BEST SPREADS Visit broker
#3 66% of retail CFD accounts lose money Founded: 2014 Global Forex & CFD Broker
Number One Broker
Best Trading Conditions Visit broker
#4 Forex Broker eToro Logo67% of CFD traders lose Founded: 2007 Global CFD & FX Broker
Number One Broker
#5 Plus500 Forex broker logo72 % 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
Number One Broker
Best Trading App Visit broker

    Forex Fraud Certified Brokers

    ATFX Logo
    BlackBull Markets Logo
    IC Markets Logo
    HYCM Logo
    City Index Logo
    XM Logo
    AvaTrade logo
    IQ Option Logo
    OctaFX Logo
    LegacyFX Small Logo
    skilling logo
    Plus500 Small Logo
    Exness Small Logo Logo