We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bullish
Oil - US Crude
Bearish
Wall Street
Bullish
Gold
Bearish
GBP/USD
Bullish
USD/JPY
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • EUR/USD Price Rejected at Resistance, Now Eyes the Support - EUR vs USD Outlook more details in the link: https://www.dailyfx.com/forex/technical/home/analysis/eur-usd/2020/05/27/EURUSD-Price-Rejected-at-Resistance-Now-Eyes-the-Support-EUR-vs-USD-Outlook-MK.html?CHID=9&QPID=917714 https://t.co/1WxJZCpEbg
  • FTSE 100 +1.70% @ 6,162 - pushing back towards 50% Fib retracement and early March gap...#ftse #ftse100 @DailyFXTeam https://t.co/gC5fRZHKES
  • EU Commission to mobilise EUR 750bln for European recovery fund - EUR 500bln grants - EUR 250bln loans $EUR
  • BREAKING: Reports on the wires that the EU is considering an EUR750bn virus recovery plan. EU Commission to unveil details later today. #EUR #EuropeanUnion #COVID19
  • Join @PaulRobinsonFX 's #webinar at 5:30 AM ET/9:30 AM GMT to gain insight on indices and commodities for the active trader. Register here: https://t.co/gghsFsZYlx https://t.co/MpELL4brE5
  • The Canadian Dollar has proven stable in recent weeks following a dramatic turn lower in March, guided to the downside by energy markets. Get your $USDCAD market update from @CVecchioFX here: https://t.co/7tlrn74X3t https://t.co/dXPFiHz6EA
  • Idea de #trading del día: $GBPUSD e #IBEX35 https://t.co/keSNWeUnM5 https://t.co/Cxv4P4zZWc
  • Heads Up:💶 ECB Guindos Speech due at 08:30 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-05-27
  • ECB PRESIDENT LAGARDE: - No new Euro debt crisis after pandemic, what matters is how borrowed money is spent - Not overly concerned about high debt levels #EUR #ECB
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.62%, while traders in US 500 are at opposite extremes with 76.70%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/01rko7aQXN
USD/JPY Technical Analysis: The Core FX Pair In The Risk Paradigm

USD/JPY Technical Analysis: The Core FX Pair In The Risk Paradigm

2016-03-02 12:50:00
Tyler Yell, CMT, Currency Strategist
Share:

See How FXCM’s Live Clients Are Positioned In FX & Equities Here

Talking Points:

  • USD/JPY Technical Strategy: Triangle Formation Below 115.55 Favors Range For Now
  • Risk Sentiment on March 1 Left JPY As Weakest Currency To Start March
  • A Nikkei Move Higher Would Align With USD/JPY Pushing Into Resistance

USD/JPY is coming off its largest monthly drop in February since October 2008. Of course, the subsequent move was a multi-year gain in the JPY. The next move will likely include a good deal of volatility, even if we do not have a clear understanding of direction going forward.

Looking to other asset classes like US Treasury yields that saw the 10Y climb as much as 10bps on Tuesday shows that the pressure to buy JPY is letting up for now. The 2-year yield is equally interesting as it is more of a proxy for expected monetary policy. For example, we see divergences in traditional stronghold relationships in other JPY crosses starting to favor JPY shorts.

Additionally, we see a boost in equity markets, which are also supporting the JPY crosses higher with 111 being a key support for now in USD/JPY. SPX500 has moved higher ~10% from the February 11 low and a further push higher could continue to favor the range with a push toward former long-term support, new potential resistance at 115.00/55.

115.55 Key Resistance on USD/JPY

USD/JPY Technical Analysis: The Core FX Pair In The Risk Paradigm

Key Levels from Here

USD/JPY does appear to be holding support between 111/12 for now. This sign of stabilization could support a short-term rally since we have moved above prior resistance of 112.95. In the meantime, we could see this current trend aligning with a move higher toward the 21-DMA on the chart below, and higher toward 115.00/55.

On the chart above, you can see that a long-term trend-line may be holding up the price for now. Traders looking for specific key levels to grasp should be looking to the ~75 pip range from 112.27-113.02 that comprises the February 24 and February 25 lows.

USD/JPY Technical Analysis: The Core FX Pair In The Risk Paradigm

T.Y.

Interested In Learning the Traits of FXCM’s Successful Traders? If So, Click Here

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.