USDJPY Reversing?
USDJPY is showing signs of a potential reversal lower here. Price recently failed once again at a test of the 109.63 level and is now starting to break below the rising channel from last year’s lows. With the MACD and RSI indicator turning bearish here, there is room for a push lower towards the 107.91 level firstly and the 106.97 level thereafter.
JPY has been back in demand recently amidst softer risk appetite at the start of the week. While risk assets have broadly recovered into the end of the week, rising inflation expectations looks likely to create further headwinds for risk assets going forward. Meanwhile, with the US Dollar continuing to trade lower, there is room for JPY to continue to advance in the near term.
Key Data to Watch
US PMI readings later today will be the final key economic releases to watch. Both services and manufacturing are forecast to have declined over the prior month. If this is confirmed, USDJPY is likely to move lower over the day. On the other hand, if data comes in above expectations this could see USDJPY catching a bid.
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Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.
Past performance is not indicative of future results.
High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% and 75% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.