The USDJPY, on the D1 time frame, was in a steady downtrend until it reached a lower bottom at 102.591 on the 6th of January. The Bulls found the price attractive, and the demand overcame the supply.
Since then, the price has crossed upwards through both the 15 and 34 Simple Moving Averages, and the Momentum Oscillator has crossed the zero baselines into bullish territory. A Three White Soldiers Candlestick pattern has further confirmed that a possible trend change might progress.
A higher top and critical resistance level formed on the 11th of January at 104.399. That was followed by the bears coming to the immediate defence of their positions, leading to a stalemate between them and the bulls.
If the USDJPY breaks through the critical resistance level at 104.399, then three possible price targets can be calculated from there. Applying the Fibonacci tool to the top of the resistance level at 104.399 and dragging it to a previous support level near the 15 Simple Moving Average at 103.526, the following targets can be considered. The first target may be projected at 104.939 (161 %). The second price target might be likely at 105.812 (261.8%), and the final target can be expected at 107.224 (423.6%) – if the uptrend continues.
If the support level at 103.526 is broken, the bullish scenario above is invalidated and must be re-assessed before any action is taken.
As long as positive sentiment remains and demand overwhelms supply, the USDJPY market outlook 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. 81% 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.
- Contagion Warning From Crypto Markets Could Be A Buy Signal
- Market Guru Cathie Wood is Buying These Stocks Right Now
- Bitcoin’s Correlation to Tech Stocks Throws Up Interesting Trading Ideas
- Why Did Stocks Rally After The Fed’s Record-Breaking Rate Hike?
- Could Crypto Be About To Take Off
- Is Now The Time To Buy The Dip?
Contagion Warning From Crypto Markets Could Be A Buy Signal
Market Guru Cathie Wood is Buying These Stocks Right Now
Safest Forest Brokers 2020
|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||67% of CFD traders lose Founded: 2007||Global CFD & FX Broker||
ALL-INCLUSIVE TRADING PLATFORM Visit broker
|#5||Between 74-89 % of retail investor accounts lose money when trading CFDs Founded: 2010||Global Forex Broker||
Low minimum deposit 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