USD/JPY fell below the key 105 level which was previously acting as major support but has now turned into resistance.
The failure of the market to make a sustained move higher from 105.00 would suggest that a top is now in place at 107.48 with a bias for further downside. Therefore, the rise from 99.98 to 107.48 (July 8 to July 21 rally) was probably a corrective move and the market could resume its downtrend that has been in place since the end of 2015. Prices have been falling in a downward channel since then.
RSI is trending down and has dipped below 50 into bearish territory which indicates the possibility of further downside momentum.
Immediate support is this week’s low of 103.98. A break below the 50% Fibonacci at 103.74 (of the upleg from 99.98-107.48) would accelerate a decline towards this month’s low of 99.98.
Forex trading and trading in other leveraged products involves a significant level of risk and is not suitable for all investors.
Recommended Content
Editors’ Picks
EUR/USD holds gains above 1.0700, as key US data loom
EUR/USD holds gains above 1.0700 in the European session on Thursday. Renewed US Dollar weakness offsets the risk-off market environment, supporting the pair ahead of the key US GDP and PCE inflation data.
GBP/USD extends recovery above 1.2500, awaits US GDP data
GBP/USD is catching a fresh bid wave, rising above 1.2500 in European trading on Thursday. The US Dollar resumes its corrective downside, as traders resort to repositioning ahead of the high-impact US advance GDP data for the first quarter.
Gold price edges higher amid weaker USD and softer risk tone, focus remains on US GDP
Gold price (XAU/USD) attracts some dip-buying in the vicinity of the $2,300 mark on Thursday and for now, seems to have snapped a three-day losing streak, though the upside potential seems limited.
XRP extends its decline, crypto experts comment on Ripple stablecoin and benefits for XRP Ledger
Ripple extends decline to $0.52 on Thursday, wipes out weekly gains. Crypto expert asks Ripple CTO how the stablecoin will benefit the XRP Ledger and native token XRP.
US Q1 GDP Preview: Economic growth set to remain firm in, albeit easing from Q4
The United States Gross Domestic Product (GDP) is seen expanding at an annualized rate of 2.5% in Q1. The current resilience of the US economy bolsters the case for a soft landing.