USD/JPY
USDJPY fell to six-week low on Friday, in fresh acceleration lower after stronger than expected inflation rise in Tokyo in November, boosted expectations for Bank of Japan’s rate hike in the policy meeting next month.
Fresh bears cracked key supports at 150.18/00 (Fibo 38.2% of 139.57/156.74/psychological, reinforced by 55DMA), with weekly close below these level to boost negative signal for extension towards next strong support at 149.21 (top of rising and thickening daily Ichimoku cloud).
However, today’s dip to 149.52 and subsequent bounce back above 150 level, signals that bears face headwinds at this zone.
Prevailing tone on daily chart is bearish, supported by strengthening negative momentum, and attempts to form 5/200DMA death cross, but countered by support from rising daily cloud and oversold stochastic.
Watch today’s reaction at 150 support zone for fresh near-term direction signal, with bearish bias expected below 200DMA (151.98), but also be aware of predominantly bullish technical structure on weekly chart (despite the pair being on track for significant weekly loss, the first one after eight consecutive weeks of gains).
This situation may lead into two scenarios – failure at 150 zone and subsequent bounce that would generate initial signal of possible heathy correction, before larger bulls regain traction, or deeper correction of the rally of over two months.
Res: 150.45; 150.74; 151.28; 151.95.
Sup: 149.52; 149.21; 148.71; 148.16.
Interested in USD/JPY technicals? Check out the key levels
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.
Recommended Content
Editors’ Picks
EUR/USD holds above 1.0550 on renewed US Dollar weakness
EUR/USD stabilizes above 1.0550 on Monday. A positive shift in risk sentiment curbs the safe-haven demand for the US Dollar, offering some comfort to the pair. Later in the week, US inflation data and ECB policy announcements could drive EUR/USD's action.
GBP/USD rises above 1.2750 as risk appetite returns
GBP/USD picks up fresh bids and clings to modest daily gains above 1.2750. Markets cheer improving risk sentiment as traders shrug off geopolitical risks and reposition ahead of the US inflation test, making it difficult for the US Dollar to gather strength.
Gold climbs above $2,650 on Chinese stimulus hopes
Gold gathers bullish momentum and trades above $2,650 on Monday. News of China planning to inject further stimulus into the economy boosts XAU/USD as investors gear up for this week's key data releases and central bank meetings.
Five Fundamentals for the week: Currencies set to rock on diverging central bank decisions Premium
The only way is down – but not in the land down under. Central banks in the Eurozone, Canada and Switzerland are on course to cut rates this week, ahead of a similar move in the US next week. Inflation data in the world's largest economy stands out as the main macro data release.
Bitcoin Price Forecast: Amazon shareholders advocate for BTC adoption amid Microsoft’s investment vote
Bitcoin edges down 2.5%, trading below $98,500 on Monday, after rallying 4% and reaching a new all-time high of $104,088 last week. As BTC reached its $100K milestone, big corporates showed interest in the largest digital asset by market capitalization.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.