Visit our website – Ikofx
The US dollar was seen trading lower against the Japanese yen, and as a result the USDJPY pair moved lower and tested the 119.40 levels. There was a solid bearish pressure noted on the pair, which took it lower in the short term. Earlier during the Asian session, the Japanese Securities investment representing bonds issued in a domestic market by a foreign entity in the domestic market’s currency and detailing the flows from the public sector excluding Bank of Japan was released by Ministry of Finance. It posted a reading of ¥1,017.2B, compared the last reading of ¥765.5B. The USDJPY pair reacted to the downside after the release.
There is a major bullish trend line formed on the hourly chart of the USDJPY pair, which is currently hold the downside in the near term. The most important point is that the pair is struggling to clear a critical barrier, which is at a confluence of 100 and 200 hourly simple moving averages. The 23.6% fib retracement level of the last drop from the 120.32 high to 119.41 low is also around the same area. In short, there is a major at 119.65, which might cause downside reaction in USDJPY. If the pair breaks lower, then a test of the 119.00 level is likely in the near term where buyers could appear.
On the upside, if the pair manages to settle above the 100 hour SMA, then a move towards the 120.00 level would be on the cards if buyers gain control.
Overall, one might consider selling rallies in the USDJPY pair as long as the pair is below the 100 MA.
————————————-
Posted By IKOFX Technical Team: Online Forex Broker
Website – http://ikofx.com
Free Reports:
