The Japanese Yen acted like the safest major currency today after trading at the best level in two weeks amid a heavy U.S. Dollar sell-off. However, the aggressive Fed rate hike bets continued acting as a tailwind for the greenback and might find it as support.
Several factors helped the Samurai currency for the second consecutive day and dragged spot prices further away from over a two-decade low touched earlier this week. The predominant risk-off situation in the market boosted demand for the safe Yen. This, along with a further pullback in the U.S. Treasury bond yields, further inspired bearish traders and exerted downward pressure on the USDJPY pair.
However, the underlying bullish sentiment surrounding the Greenback could lend support to the USDJPY pair and curb the ongoing corrective slide. The headline and core U.S. CPI were strong enough to reinforce market bets for a more aggressive policy tightening by the Fed. In fact, money market futures are now pricing in an 81% chance of a 75 basis points rate hike in June. This should continue to fuel the U.S. Dollar amid a big divergence in the Fed and BoJ policy outlooks.
Long-Term Outlook
The USDJPY pair broke out of the upward channel into a corrective trend, it closed two candles out of the channel indicating a high possibility to touch the support of 127.
Furthermore, Fibonacci retracement is also showing a reading that the pair retreated from a strong resistance towards the 23.6 level at 127. Also, Fibonacci numbers show indicate that 127 is a critical level for the pair, as breaking it might increase the chances of a dive towards 124 or 123.
Technical indicators signal a continuation of the decline but there is no solid support appears in the calculations for the current data. However, the 20 periods moving average remains alongside the last candle signaling a possibility of forming support within the current levels.
Daily chart supports and resistance
Support | Resistance |
127.00 | 130.50 |
124.00 | 131.40 |
121.00 | 134.00 |
Intra-day outlook
On the hourly chart, the pair is free diving breaking both supports at 130 and 128.90. Like the readings on the Daily chart, the pair is not showing any sign of slowing or bouncing before 127.10.
The 20 period moving average is signaling further decline, while the RSI is below 30 and showing the pair as oversold but still not ready to change direction. Both RSI and MACD agree about one thing, the pair is free-falling without
开设真实账户
请输入有效的国家
未找到结果
未找到结果
请输入有效的电子邮件
请输入有效的验证码
1.8-16个字符+数字(0-9) 2.字母组合(A-Z、a-z) 3.特殊字符(例如!a#S%^&)
请输入正确格式
请勾选复选框以继续
请勾选复选框以继续
Important Notice
STARTRADER does not accept any applications from Australian residents.
To comply with regulatory requirements, clicking the button will redirect you to the STARTRADER website operated by STARTRADER PRIME GLOBAL PTY LTD (ABN 65 156 005 668), an authorized Australian Financial Services Licence holder (AFSL no. 421210) regulated by the Australian Securities and Investments Commission.
CONTINUE错误!请再试一次。