Tuesday, April 04, 2017 6:11:27 AM
Technical Outlook for USDJPY & Daily Chart
Since the Federal Reserve increase the interest rate last month and the US Dollar is in constant decline against the Japanese Yen from the highest level in the last two months at 115.49 to trade now at 110.40 it means more than 500 pips loss.
The USDJPY currency pair is trading now in series of corrective waves in a price channel which will lead the prices to make a correction movement to 50% and 61.8% Fibonacci, but we have a key support level at last month’s lowest prices that in case the pair broke it down we can take sell positions to make profits.
The MACD indicator is still giving us a sell signal and the bars are below the 0 value, the RSI didn’t give us the oversold sign yet, it means the pair will lose more pips.
The Next Few Days
From this analysis we can sell the pair now at 110.45 with small lot size and increase it once the pair broke the 110.15 level and keep our first target at 50% Fibo at 108.85 and the second one at 106.50 which reflect the 61.8% Fibo that in case the pair still trading below 111.70, if it broke 111.70 up we can buy it till 113.40.
We have to be careful in the upcoming hot news like the ISM nonmanufacturing PMI and the FOMC Meeting next Wednesday and the Non-Farm and jobs report on Friday
Since the Federal Reserve increase the interest rate last month and the US Dollar is in constant decline against the Japanese Yen from the highest level in the last two months at 115.49 to trade now at 110.40 it means more than 500 pips loss.
The USDJPY currency pair is trading now in series of corrective waves in a price channel which will lead the prices to make a correction movement to 50% and 61.8% Fibonacci, but we have a key support level at last month’s lowest prices that in case the pair broke it down we can take sell positions to make profits.
The MACD indicator is still giving us a sell signal and the bars are below the 0 value, the RSI didn’t give us the oversold sign yet, it means the pair will lose more pips.
The Next Few Days
From this analysis we can sell the pair now at 110.45 with small lot size and increase it once the pair broke the 110.15 level and keep our first target at 50% Fibo at 108.85 and the second one at 106.50 which reflect the 61.8% Fibo that in case the pair still trading below 111.70, if it broke 111.70 up we can buy it till 113.40.
We have to be careful in the upcoming hot news like the ISM nonmanufacturing PMI and the FOMC Meeting next Wednesday and the Non-Farm and jobs report on Friday
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