USD/JPY analysis: Is highly volatile
|
The USD/JPY managed to pass the support of the 107.80/108.00 zone. This resulted in a sharp drop to the 107.50 level. However, the support of the 107.50 managed to hold and immediately cause a surge. The surge was much sharper than the drop and in less than two hours had almost reached the 108.20 level, ignoring all the levels that had any significance during the week.
In the near term future, the USD/JPY was expected to encounter resistance in the 108.20 level, which provided the rate with resistance during the week.
In the case of the rate passing the resistance of the 108.20 mark, the USD/JPY could test the upper trend line of the channel down pattern. On the other hand, a decline would be almost impossible to forecast, as it appears that the SMAs and the 107.80/108.00 zone are being ignored.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.