USD/JPY Outlook: Bears pressure pivotal support at 104.18, break of which would risk drop to 2020 low

Slobodan Drvenica Windsor Brokers

The dollar holds firmly in red vs yen for the fifth straight day and on track for a weekly fall of approx. 1.6% (the biggest weekly drop since the second week of June.

The dollar suffered from dovish Fed, risk mode and downbeat US data that point to a slowdown in economic recovery.

Bears pressure July’s low at 104.18 after generating strong signal on Thursday’s close below 104.86 Fibo support (76.4% of 104.18/107.04 ascend).

The downtrend could accelerate on firm break of 104.18 trigger that would unmask 2020 low at 101.18 (9 Mar).

Firm bearish setup of technical studies on daily and weekly chart supports bears as this week’s massive bearish candle is expected to weigh on the action next week.

Oversold daily techs warn that bears may take a breather in coming sessions, with upticks to provide fresh selling opportunities while capped under barriers at 105.20/30 zone.

Res: 104.86; 105.03; 105.28; 105.59
Sup: 104.18; 103.51; 103.09; 102.41

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

EUR/USD trims gains, back below 1.1800

EUR/USD now loses some upside momentum, returning to the area below the 1.1800 support as the Greenback manages to regain some composure following the SCOTUS-led pullback earlier in the session.

GBP/USD off highs, recedes to the sub-1.3500 area

Following earlier highs north of 1.3500 the figure, GBP/USD now faces some renewed downside pressure, revisiting the 1.3490 zone as the US Dollar manages to regain some upside impulse in the latter part of the NA session on Friday.

Gold climbs to weekly tops, approaches $5,100/oz

Gold keeps the bid tone well in place at the end of the week, now hitting fresh weekly highs and retargeting the key $5,100 mark per troy ounce. The move higher in the yellow metal comes in response to ongoing geopolitical tensions in the Middle East and modest losses in the US Dollar.