- USD/JPY feels the pull of gravity as risk sentiment weakens on coronavirus concerns.
- Deeper losses look likely, as the 4-hour chart shows a bear flag breakdown.
The anti-risk Japanese yen is gaining ground on coronavirus-induced risk-off in stock markets and pushing USD/JPY lower.
At press time, the currency pair is trading largely unchanged on the day near 104.45, having put in a high of 104.56 early today. Technical charts suggest scope for deeper declines.
The pair fell by 0.4% on Tuesday, confirming a bear flag breakdown on the 4-hour chart. The pattern indicates a continuation of the sell-off from the Oct. 20 high of 105.75, possibly toward 104.00 (Sept. 21 low). A close above 105.00 is needed to invalidate the immediate bearish bias.
That looks unlikely as the bear flag breakdown is backed by a below-50 or bearish reading on the relative strength index. The 4-hour chart MACD is also producing deeper bars below the zero line, a sign of the strengthening of the downward momentum.
|Today last price||104.47|
|Today Daily Change||0.06|
|Today Daily Change %||0.06|
|Today daily open||104.41|
|Previous Daily High||104.89|
|Previous Daily Low||104.39|
|Previous Weekly High||105.75|
|Previous Weekly Low||104.34|
|Previous Monthly High||106.55|
|Previous Monthly Low||104|
|Daily Fibonacci 38.2%||104.58|
|Daily Fibonacci 61.8%||104.7|
|Daily Pivot Point S1||104.24|
|Daily Pivot Point S2||104.06|
|Daily Pivot Point S3||103.74|
|Daily Pivot Point R1||104.74|
|Daily Pivot Point R2||105.07|
|Daily Pivot Point R3||105.24|
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