News & Analysis at your fingertips.

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.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Bearish
Oil - US Crude
Mixed
Wall Street
Mixed
Gold
Bearish
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
GBP/USD
Bearish
USD/JPY
Bullish
More View more
Real Time News
  • An economic calendar is a resource that allows traders to learn about important economic information scheduled to be released. Stay up to date on the most important global economic data here: https://t.co/JdvW6HNuqV https://t.co/AiLoS7DrEQ
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here: https://t.co/3Wked6GBOp https://t.co/HicBmGrokK
  • There is a great debate about which type of analysis is better for a trader. Is it better to be a fundamental trader or a technical trader? Find out here:https://t.co/7kPzAoNoLG https://t.co/5lbyBJeeA7
  • Entry orders are a valuable tool in forex trading. Traders can strategize to come up with a great trading plan, but if they can’t execute that plan effectively, all their hard work might as well be thrown out. Learn how to place entry orders here: https://t.co/lAFyv1gM0P https://t.co/ubLimoYAcr
  • What is the outlook for financial markets ahead of the first presidential debate and how are Democratic nominee Joe Biden and President Donald Trump doing in the polls? Find out from @ZabelinDimitri here:https://t.co/QQwAZTxZFg https://t.co/4cRhRCiv3C
  • The US Dollar could gain as it forms bullish technical formations against the Singapore Dollar and Malaysian Ringgit. USD/PHP may have bottomed, will USD/IDR rise next? Find out from @ddubrovskyFX here:https://t.co/3UIKmbLIvD https://t.co/PY2YyH4vkQ
  • The Indian Rupee may be at risk to the US Dollar as USD/INR attempts to refocus to the upside. This is as the Nifty 50, India’s benchmark stock index, could fall further. Get your $USDINR market update from @ddubrovskyFX here:https://t.co/3wsYlSxd26 https://t.co/z2qB9p8IgX
  • A proxy of #EmergingMarket capital flows hit its lowest since July, falling with the #SP500 after some divergence This is as #USD gained against its developing FX counterparts, highlighting potential risk of a spillover outwards Stay tuned for next week's #ASEAN fundy outlook! https://t.co/kAvpnb0EXO
  • 4 consecutive down weeks for the #SP500, last matched over a year ago #Fed balance sheet continues to gain very cautiously, now at its highest since the middle of June. Still, at slower pace than last week Focus shifts to US fiscal stimulus next week in the House of Reps https://t.co/f8zpSILm86
  • #Gold prices have broken lower and while the broader technical structure is constructive, the risk remains for a deeper correction before resumption. Get your $XAUUSD technical analysis from @MBForex here: https://t.co/7p3jPx6nQd https://t.co/nnCSdt6OV5
USD/JPY Technical Analysis: Bulls Still Haven't Broken Resistance

USD/JPY Technical Analysis: Bulls Still Haven't Broken Resistance

2016-07-27 20:04:00
Jeremy Wagner, CEWA-M, Head of Education
Share:

Talking Points

-Japanese fiscal stimulus is anticipated to be announced Thursday night into Friday morning

-USD/JPY has overlapped July 21 low signifying the medium term bias is bullish

-Follow shifts in sentiment for clues on the near term direction of USD/JPY

The next 24-36 hours may see some volatile price swings for USD/JPY. Bank of Japan is scheduled to release their latest round of monetary statements and which may include additional measures of stimulus.

We previously wrote how the medium term bias for USD/JPY is bullish. Tuesday’s break above 105.42 creates overlap with the July 21 low. That overlap is significant because it suggests the move from 107.49 to 103.99 was a corrective consolidation and the prices may fully retrace to above 107.49 in the coming weeks.

USD/JPY Technical Analysis: Bulls Still Haven't Broken Resistance

The pattern that stands out right now is that we have a 5 wave impulsive move from July 8 to July 14 to start a new uptrend. According to Elliott Wave theory, there are two other patterns that start off a new trend with a five wave move and both of those patterns are followed by another move of similar size. Therefore, once support is formed, we can target another 600 pip move higher as that was the distance of the July 8-14 trend.

Should prices find support and move higher, the next top side level of resistance comes in near 106.72 then 107.50. Above these levels opens the door towards 111.

If prices continue to consolidate lower, consider the previous swing lows near 104.00 as support.

From a sentiment perspective, the growth in short traders has been slowing down from the recent 10 month high. The current SSI reading is +1.38 which is slightly lower than yesterday and still favors the bulls. However, if less traders become interested to the short side, then that could indicate top side potential is waning. Use the shifts in SSI to provide near term clues on price direction. See live trader positioning on USD/JPY here.

Suggested Reading:Bulls Aren't Out of the Woods Yet

Are you familiar with one of the biggest mistake traders make? Find out what it is and how to overcome it here.

Interested in a quarterly outlook for USD and/or JPY? Download our quarterly forecast here.

---Written by Jeremy Wagner, Head Trading Instructor, DailyFX EDU

Follow me on Twitter at @JWagnerFXTrader .

See Jeremy’s recent articles at his Bio Page.

To receive additional articles from Jeremy via email, join Jeremy’s distribution list.

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

DISCLOSURES