USD/JPY Settles at Big Support

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In this collection we scale-back and take a look at the broader technical image to realize a bit extra perspective on the place we’re in development. The US Dollar has fallen greater than 3.5% towards the Japanese Yen with worth now testing a key technical assist zone we’ve been monitoring for months now. These are the up to date targets and invalidation ranges that matter on the USDJPY/USD weekly chart. Review this week’s Strategy Webinar for an in-depth breakdown of this setup and extra.

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USD/JPY Price Chart – Weekly

USD/JPY Price Chart - US Dollar vs Japanese Yen Weekly Outlook

Notes: USD/JPY is buying and selling right into a crucial assist zone we’ve been monitoring for months now at 107.84-108.43– a area outlined by the 61.8% retracement of the 2018 advance and the 2017 low-week shut. A break under this key zone is required to maintain the bears in management concentrating on the 2013 trendline simply above the 106-handle. Resistance stands with the target yearly open at 109.68 backed by the high-week shut at 111.54. Ultimately a breach above 112.43/59 can be wanted to shift the broader focus again to the topside in USD/JPY.

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Bottom line: USD/JPY is testing BIG assist this week and the main focus is on a response off this mark. Watch the weekly shut – above 108.43 would depart the danger for a restoration in direction of the yearly open. Sub-107.84 dangers additional losses for the Dollar with such a situation concentrating on multi-year slope assist. From a buying and selling standpoint, the danger for a near-term restoration right here stays however we’ll be on the lookout for a short-entries on a transfer in direction of the yearly open- finally favoring a draw back break of this key zone.

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USD/JPY Trader Sentiment

USD/JPY Trader Sentiment - US Dollar vs Japanese Yen Price Chart - Techncial Forecast

  • A abstract of IG Client Sentiment exhibits merchants are net-long USD/JPY – the ratio stands at +2.22 (68.9% of merchants are lengthy) – bearish studying
  • Traders have remained net-long since May 3rd; worth has moved 2.8% decrease since then
  • Long positions are 1.4% decrease than yesterday and 6.8% decrease from final week
  • Short positions are 3.5% larger than yesterday and 10.6% larger from final week
  • We sometimes take a contrarian view to crowd sentiment, and the very fact merchants are net-long suggests USD/JPY costs could proceed to fall. Yet merchants are much less net-long than yesterday and in contrast with final week. Recent adjustments in sentiment warn that the present USD/JPY worth development could quickly reverse larger regardless of the very fact merchants stay net-long.

See how shifts in USD/JPY retail positioning are impacting trend- Learn extra about sentiment!

Key US / Japan Data Releases

US / Japan Key Data Releases - USD/JPY

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Previous Weekly Technical Charts

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— Written by Michael Boutros, Technical Currency Strategist with DailyFX

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