USD/JPY - 109.89.. Despite initial sideways swings on Tue n intra-day gain to 109.74 in Europe, dlr briefly fell to 109.34 b4 rallying in NY in tandem with US yields n hit 109.95 due to risk sentiment on rebound in global stocks.

On the bigger picture, dlr's fall fm 118.66 (Dec 2016) to 2019 low at 104.46 (Sep) confirms early uptrend fm 2016 29-month bottom at 99.00 has hit a top there. Despite hitting a 3-1/2 year bottom of 101.19 in Mar 2020 on risk-off trades due to COVID-19 pandemic, dlr's strg rise to 111.71 signals low is made. Having said that, although price ratcheted higher to a 15-month peak of 111.65 in early Jul after a retreat to 107.49 in Apr, subsequent cross-inspired fall to 109.54 in Jul signals long-awaited correction has taken place as 111.65 top was also accompanied by 'bearish divergences' on daily indicators n weakness to 108. 57 is seen but 108.19 (38.2% r of 102.60-111.65) may hold. Abv 110.69, 111.65.

Today, dlr's rebound fm 109.34 to 109.95 in NY on short covering suggests recent decline fm Jul's 111.65 peak has made a temp. low at Mon's 7-week trough at 109.07 n rising hourly indicators signal consolidation with upside bias remains for gain twd 110.34 b4 down. Below 109.34, 109.07, then 108.57.

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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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