For Traders

Analytical Reviews

Technical analysis

30.06.202109:02 Forex Analysis & Reviews: USD/JPY Temporary Decline!

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

USD/JPY has decreased a little in the short term after reaching a strong resistance level. Still, the decline could be only temporary as the bias remains bullish. It could only test and retest the immediate support levels before jumping higher.

The Japanese Consumer Confidence and Housing Starts indicators have come in better thane expected, while the Prelim Industrial Production dropped more than expected.

The pair will be driven by US data today. The ADP Non-Farm Employment Change is expected to be around 555K below 978K reported in May. The Pending Home Sales could drop by 1.1%, while the Chicago PMI is expected to drop from 75.2 to 70.2.

USD/JPY Downside Seems Limited!

USD/JPY has found strong resistance at the 110.96 level and now is traded lower at 110.49. The descending pitchfork's 150% Fibonacci line represents strong dynamic resistance as well.

It's located under the weekly pivot point (110.53) but the sellers seem exhausted. The 110.32 is seen as the next downside obstacle. Also, the upper median line (uml) and the uptrend line represent support levels.

Forecast!

Coming back above the pivot point and making a valid breakout above the 150% Fibonacci line, above the immediate dynamic resistance, could bring an upside continuation.

We could search for long opportunities as long as the rate stands above the mentioned support levels.

An important growth could be confirmed after a breakout above the 110.96 level.

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.