USDJPY has tanked breaking important patterns and supports clearly showing risk-off sentiment. Purely risk off sentiment across markets is the cause for Yen to appreciate against the G10 currencies. Many carry trades involving cheap credit from Japan are invested across foreign markets, and during risk-off, many of those trades are reversed and repatriated back into Yen, causing demand for Yen.
Technically USDJPY still has the room to fall down. As we can see on the chart, bear pennant has been broken to the downside making USDJPY hit L5 weekly CAM support. Pullbacks within POC zone 113.90-114.10 could be used for another short selling. The zone shows strong confluence selling at the Bearish pennant breakout and we should see institutional selling again if the price retraces.

However if the price breaks now moment double bottom -110.98 it should proceed to 110.06 previous weekly high.

USDJPY

The analysis and the article presents Nenad's opinion. Remember, financial trading is highly speculative & may lead to the loss of your funds. Proper risk management is the Holy Grail of trading.

Recommended Content


Recommended Content

Editors’ Picks

EUR/USD eases to near 1.0700 ahead of German inflation data

EUR/USD eases to near 1.0700 ahead of German inflation data

EUR/USD is paring gains to near 1.0700 in the European session on Monday. The pair stays supported by a softer US Dollar, courtesy of the USD/JPY sell-off and a risk-friendly market environment. Germany's inflation data is next in focus. 

EUR/USD News

USD/JPY recovers after testing 154.50 on likely Japanese intervention

USD/JPY recovers after testing 154.50 on likely Japanese intervention

USD/JPY is recovering ground after sliding to 154.50 on what seemed like a Japanese FX intervention. The Yen tumbled in early trades amid news that Japan's PM lost 3 key seats in the by-election. Focus shifts to the US employment data and the Fed decision later this week. 

USD/JPY News

Gold price holds steady above $2,335, bulls seem reluctant amid reduced Fed rate cut bets

Gold price holds steady above $2,335, bulls seem reluctant amid reduced Fed rate cut bets

Gold price (XAU/USD) attracts some buyers near the $2,320 area and turns positive for the third successive day on Monday, albeit the intraday uptick lacks bullish conviction.

Gold News

Ripple CTO shares take on ETHgate controversy, XRP holders await SEC opposition brief filing

Ripple CTO shares take on ETHgate controversy, XRP holders await SEC opposition brief filing

Ripple loses all gains from the past seven days, trading at $0.50 early on Monday. XRP holders have their eyes peeled for the Securities and Exchange Commission filing of opposition brief to Ripple’s motion to strike expert testimony.

Read more

Week ahead: FOMC and jobs data in sight

Week ahead: FOMC and jobs data in sight

May kicks off with the Federal Open Market Committee meeting and will be one to watch, scheduled to make the airwaves on Wednesday. It’s pretty much a sealed deal for a no-change decision at this week’s meeting.

Read more

Majors

Cryptocurrencies

Signatures