FLASH NEWS
FLASH NEWS
Friday, January 22, 2021

USD/JPY runs into key resistance trendline to kick begin the brand new week

The take a look at of patrons’ urge for food is simply starting for USD/JPY

USD/JPY D1 11-01

The pair is as much as its highest ranges in almost a month above 104.00 because the greenback retains extra bid forward of European buying and selling immediately. Of notice, value is working right into a key resistance trendline because the center of final 12 months – now seen @ 104.18.

That has helped to restrict beneficial properties within the pair all through the second-half of final 12 months and can be a key degree to look at in case patrons attempt to set up additional upside momentum.

Simply above that, there’s additionally one other key trendline resistance stretching again to the March highs final 12 months and that’s seen @ 104.38 for the time being.

As such, the area between 104.18-38 would be the key spot that patrons want to interrupt above now with a view to chase additional upside within the pair amid the breakout in yields.

Including to the resistance layer close by is the 100-day shifting common (crimson line) @ 104.71.

The extent has helped to restrict patrons’ momentum since June final 12 months and I might argue that it’s the key technical degree to look at if there’s to be a stronger upside break within the pair in direction of 105.00 and maybe the 200-day shifting common (blue line) subsequent.

The greenback is posting a modest bounce because it sees a pullback upon lately stretched positioning and in addition a rebound following a take a look at of some help from a technical perspective (greenback index charts could be discovered right here).

Nonetheless, I am nonetheless not all too satisfied about how sustainable this transfer could be. Within the case of USD/JPY, the rise in long-end yields is unquestionably an impetus to maneuver greater. Nonetheless, if short-end yields do not comply with by, gravity could weigh on the pair finally.

Please Post Your Comments & Reviews

Your email address will not be published. Required fields are marked *