USD/ JPY: US dollar bounces at 109.850 and heads back up

Denis Joeli Fatiaki Independent Analyst

What happened in the last 24 hours of the trading session?

USD/ JPY: The US dollar attempted to break at 110.680 after bouncing at 110.488 but was too weak as highlighted in the last update and retreated to 110.488. The pair continued to the downside, pushing prices below 110.300 and then all the way to 109.784.

What is going on now?

USD/ JPY: The US dollar managed to bounce at 109.850 and already made some improvement in the last three hours of trades. The pair currently trades at 110.030 and looking to push on to its first challenge at 110.107.

Our forecast

USD/ JPY: The US dollar seems to have found support at 109.850 and may start to work its way back up. We might see some price consolidation around this price level before it makes a clear run to the upside. The US dollar needs to clear the resistance price level at 110.107 before moving on to its next challenge at 110.300

It is good practice to apply a stop loss to all your trades to protect your capital in case the market moves against your position.

Support: 109.987, 109.850 and 109.784
Resistance: 110.107, 110.179, 110.300 and 110.488
Estimated price target: 110.300, 110.488

Chart 1: The short-term view of the price action in the 60 minutes price chart highlights the direction of the trend and the support and resistance price points

Chart 2: The short-term view of the price action in the four-hour price chart highlights the direction of the trend and the support and resistance price points

Author

Denis Joeli Fatiaki

Independent Analyst

Denis Joeli Fatiaki possesses over a decade of extensive experience as a multi-asset trader and Market Strategist.

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