Daily technical and trading outlook - USD/JPY

AceTrader Team AceTrader

DAILY USD/JPY TECHNICAL OUTLOOK
Last Update At 21 May 2020 00:04GMT

Trend Daily Chart
Sideways

Daily Indicators
Turning up

21 HR EMA
107.59

55 HR EMA
107.56

Trend Hourly Chart
Sideways

Hourly Indicators
Rising fm o/s

13 HR RSI
47

14 HR DMI
-ve

Daily Analysis
Consolidation with downside bias

Resistance
108.52 - 100% proj. of 105.99-107.76 fm 106.75
108.08 - Tue's 1-month high
107.76 - Last week's high (Mon)

Support
107.34 - Wed's low
107.04 - This week's low (Mon in NZ)
106.75 - Last Wed's low

USD/JPY - 107.56 ... Although dlr met renewed buying at 107.65 in Australia y'day n rebounded to 107.98 at Asian open, failure to re-test Tue's 1-month high at 108.08 pressured price to 107.34 in NY morning b4 recovering.

Looking at the bigger picture, dlr's 'erratic' fall fm 118.66 (Dec 2016) to 2019 low at 104.46 (Sep) confirms the early uptrend fm 2016 29-month bottom at 99.00 has made a top there. Although price ratcheted higher to a 9-1/2 month top of 112.22 in Feb, dlr then tumbled in tandem with U.S. stocks n yields to a 3-1/2 year trough of 101.19 in early Mar on risk-off trades due to coronavirus pandemic. Having said that, dlr's rally to 111.71 on broad-based usd's strength due to funding demand signals low has been seen. Despite subsequent fall to a 7-week low of 105.99 in May, dlr's gain to 108.08 on Tue signals pullback fm 111.71 is over n price is en route twd 108.85, break would extend twd 109.37.

Today, dlr's decline to 107.34 due to usd's weakness in NY y'day suggests recent 3-legged rise fm May's 105.99 low has made a top at 108.08 (Tue) n stronger retracement twd 107.03 (50% r) is envisaged, o/sold readings fm hourly indicators should keep price abv 106.75. Abv 108.08 risks 108.35/40.

Interested in USD/JPY technicals? Check out the key levels

1. R3 108.55
2. R2 108.27
3. R1 107.9
PP 107.62
1. S1 107.26
2. S2 106.97
3. S3 106.61

Author

AceTrader Team

AceTrader

Led by world-renowned technical analyst Wilson Leung, we have a team of 7 analysts monitoring the market and updating our recommendations and commentaries 24 hours a day.

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