USD/JPY

The correction on Dollar/Yen continues to develop. A second huge bear candle on Friday has pulled the pair back to eye the congestion of the old Q4 2019 trading lows between 106.50/107.65. The move has now unwound into the realms of the 61.8% Fibonacci retracement (of the original massive 112.20/101.20 sell-off) at 108.00 and the 50% Fib at 106.70. With momentum indicators turning increasingly corrective, the potential for a much deeper correction is growing. A bear cross on Stochastics is confirming a renewed sell signal this morning, whilst RSI is back under 50, suggests that how the market reacts in the early part of this week could be crucial. The huge swings of momentum in the past month open the prospect that now the bears are back in the driving seat, and if volatility remains elevated, a sharp decline could quickly move through the gears. We are seeing ongoing market swings even early this morning, but there is a continuation of the negative bias. We are mindful of the Fib levels, with 50% Fib at 106.70 a target if the 61.8% Fib at 108.00 is breached decisively into the close. The hourly chart shows increasingly corrective momentum, with a downtrend and the market moving lower following the completion of a top below 109.30. The implied move is for c. 107.10 to be tested. Resistance is initially at 108.00 this morning, and a building band 108.20/109.00 growing as key resistance.

USDJPY

 

 

Risk Warning for Financial Promotions

Hantec Markets' various market reports and commentary are issued by Hantec Markets Limited, who is authorised and regulated by the Financial Conduct Authority (FCA) in the UK, No. 502635. The reports are prepared and distributed for information purposes only.

Trading in Foreign Exchange (FX), Bullion and Contracts for Differences (CFDs) is not be suitable for all investors due to the high risk nature of these products. Forex, Bullion and CFDs are leveraged products that can result in losses greater than your initial deposit. The value of an FX, Bullion or CFD position may be affected by a variety of factors, including but not limited to, price volatility, market volume, foreign exchange rates and liquidity. You may lose your entire initial stake and you may be required to make additional payments. Please ensure you fully understand the risks involved, seeking independent advice if necessary prior to entering into such transactions. Before deciding to enter into FX, Bullion and/or CFD trading, you should carefully consider your investment objectives, level of experience, and risk appetite. You should only invest in FX, Bullion and/or CFD trading with funds you are prepared to lose entirely. Therefore, only your excess funds should be placed at risk and anyone who does not have such excess funds should completely refrain from engaging in FX and/or CFD trading. Do not rely on past performance figures. If you are in any doubt, please seek further independent advice.

The reports do not constitute personal investment advice, nor do they take into account the individual financial circumstances or objectives of the clients who receive it. All information and research produced by Hantec Markets is intended to be general in nature; it does not constitute a recommendation or offer for the purchase or sale of any financial instrument, nor should it be construed as such. All of the views or suggestions within the reports are those solely and exclusively of the authors, and accurately reflect their personal views about any and all of the subject instruments and are presented to the best of the authors' knowledge. Any person relying on these reports to undertake trading does so entirely at his/her own risk and Hantec Markets does not accept any liability.

© 2014 Hantec Markets Limited

Analysis feed

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Analysis


Latest Forex Analysis

Editors’ Picks

EUR/USD tests daily lows above 1.1300 amid broad dollar recovery

EUR/USD trades close to 1.1300 amid a broad-based US dollar recovery. The shared currency remains at the mercy of the broader market sentiment as the data docket is light on Monday. COVID-19 stats in focus. 

EUR/USD News

GBP/USD drops towards 1.2600 as US dollar rebounds

GBP/USD extends the drop towards 1.2600 amid the broad US dollar comeback. UK Michael Gove pushes to prepare for Brexit, as differences prevail in post-transition talks. BoE’s Bailey to speak later today.

GBP/USD News

Gold sits near daily tops, just below $1810 level

A combination of supporting factors assisted gold to regain positive traction on Monday. Sustained USD selling remained supportive amid concerns about rising COVID-19 cases. The prevalent risk-on mood might turn out to be the only factor capping any strong gains.

Gold News

Dominance war to push Ethereum to $270

The Altcoin segment is still in full swing while the crypto board leaders, Bitcoin and Ethereum, remain stuck at the same levels as in recent weeks. The dispute for market share, or dominance in technical terms, remains at a point of maximum tension. 

Read more

WTI: 200-HMA probes bears above $40.00

WTI stays pressured beyond $40.00 despite multiple bounces off 200-HMA. MACD conditions suggest bears rolling up their sleeves for entry. Bulls will have multiple upside barriers beyond $41.00.

Oil News

Forex Majors

Cryptocurrencies

Signatures