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The pair soared to 80.23 after BOJ intervened markets this Thursday, yet the strong risk aversion triggered by the ECB has pushed the pair back lower. Hourly chart shows corrective movement may extend towards key 78.45 price zone that should keep the downside limited at least for today.
they soared just temporary since then they fell through 78.50 in my chart, personally i prefer to wait before any further action ahead of the NFP, if the NFP is worse than expected 77.10 is achieve able:)Quote:
Originally Posted by gururaj
The pair has skyrocketed over 90 pips in 1 minute to peak at 79.40, only to lose most of its gains in the next 5 minutes, now back at 78.70.
yes brother, they even testing 78.4 on my chart at the moment, they may reach 77.80 before the market closed, on a higher time frame it still look a side ways for me, we shall see what happened next week:)Quote:
Originally Posted by niteshforex
the pair is trading under the level of 79.00 , that's mean if the pair succeeded in breaking 79.00 it will continue in uptrend to 79.30 and then 79.50 , but if the pair bounced from 79.00 , it will continue in the down trend heading to 78.70 and 78.40
Hourly chart, shows indicators slightly bearish below their midlines, while 20 SMA holds a timid bearish slope. Bigger time frames, show long upside shadows in candles that suggest the selling interest is dominating the pair".
USD/JPY remains neutral for the moment. Note that despite the strong rebound from 76.20, USD/JPY is held by near term falling trend, not to mention 82.22 key resistance
The Bank of Japan raised its total asset-purchase program to approximately ¥50 trillion, from ¥40 trillion previously. The Bank of Japan retained the benchmark uncollateralized overnight call rate at 0 to 0.1%.
The USDJPY exchange rate remains firmly correlated with Treasury yields, so all things being equal, an increase in US borrowing costs that is implied by the downgrade could be expected to send the pair higher.
USD/JPY rebound strongly last week on massive Japan intervention. But so far, upside was limited below near term falling trend line resistance and the pair also failed to sustain above the falling 55 days EMA. there is no confirmation of reversal yet. Initial bias is neutral this week.
Baba and Lee at Goldman Sachs said that Japan has been buying U.S. Treasuries when it sells yen, leaving it with more than 30 trillion yen in unrealized losses that will test the government’s “true determination” to combat the currency’s rise.
The spot rate approaches the upper limit of its medium term bearish channel to 80.20. A break of these levels would free up significant potential and initiate a bullish trend.
According to previous events, the market indicates a bullish opportunity as soon as the spot rate will have broken its resistance in 80.20 with a 1st objective of 81.00, then 81.30. A break in 79.90 would invalidate this scenario.
Break would bring 76.84, where correction is possible. Then 76.52, where a correction may also happen. Break of the latter will give 76.33. If a strong impulse, we would see 76.17. Continuation would give 75.91,” he adds.
The USD/JPY will remain bearish as long as below 78.50, “yet needs to lose again 78.10 to resume its long term bearish trend, and retest the 76.20/40 price zone,” says Valeria Bednarik, Chief Analyst at FXstreet.com. “Intervention rise has price now below the 50% retracement at mentioned 78.50.”
Pair within a very narrow range since the morning, while the index AROON - a trend indicator - still reflects the strength of the patch, which began at 76.25. And we will not consider this patch only if the penetration level of 78.45 decisively.
we would not at all be surprised to see the formation of a material base in favor of significant upside back towards the 82.00 area over the coming sessions. In the interim, any intraday setbacks should now be well supported above 78.00.
the pair has closed under 78.00 , that's mean the down trend is expected and the pair might head to 77.20 then 77.00 , however the pair made a hourly correction
The Japanese yen has recovered all of its losses against its American counterpart, after only three trading sessions following last week’s BoJ intervention. After opening the Asian trade at 77.75, USD/JPY broke below support at 77.50 and is now extending its losses into the 77.30 price zone.
The pair approaches record low at 76.28, although, according to Slobodan Drvenica, analyst at Windsor Brokers, the pair might bounce up ahead of further decline: "Record low at 76.28 now comes in focus, however, possible bounce on oversold near-term studies may precede fresh weakness
Currently USD / JPY is showing Down-Trend due to the weakening yen, but will be expected to sideways movement along the positive data from Japan and the strengthening dollar.
Sideways Range 77.21 - 76.63.
The Dollar has remained trading on a steady downward trend since peaking at 80.25 last Thursday, retracing all the ground gained after BoJ intervention and extending losses on WednesdayQuote:
Originally Posted by niteshforex
the U.S. sovereign credit rating downgrade by Standard and Poor’s triggered a strong selloff across global bourses, where investors abandoned risky assets and shifted their investments to the yen, which increased expectations for another intervention from the BOJ.
Despite dlr's brief breach of 76.93 (AUS) to 77.
22 on cross-trading in yen, subsequent strg pull-
back suggests the correction fm y'day's 76.35 low
has possibly ended n downside bias is seen for weak
ness to 76.54 but 76.35 shud remain intact.
the overall structure still remains bearish and it will take a break back above 80.00 to officially alleviate downside pressures and confirm reversal prospects. Below 76.25 negates.
After getting a high and low of 77.29 and 76.35 respectively, USD/JPY close the session at 76.84. The yen has advance slightly in Asia trade today, currently at 76.61 as the strength seen in the US dollar.
A decline in continuing and initials jobless claims in the US and trade balance data help stocks improve in Europe and also to Wall Street futures that trimmed losses. In the currency market the Yen weakened and turned lower on a moved that it could be also supported by a sharp decline in the Swiss Franc across the board.
the pair and as we can see from the chart is trading under level 77.00 , so , that's mean the down trend is still standing and the pair might head to 76.30 and then 76.00 how ever the pair made any hourly correction
The USDJPY is testing its record low and a break would shift focus to a Fibonacci measurement at 7258 (161.8% extension of initial decline from April high). A bounce should see resistance at 7785-7830 (50-61.8 Fibonacci and former pivot levels).
the pair and as we can see from the chart has closed it's daily candle under the level of 77.00 , so , that's mean the down trend is still standing and the pair is heading to 76.60 then 76.40
the overall structure still remains bearish and it will take a break back above 80.00 to officially alleviate downside pressures and confirm reversal prospects. Below 76.25 negates.
USD/JPY recovered from yesterday's low of 76.30 to an intra-day high of 77.02 earlier today, the pair then retreated as Nikkei 225 fell back to negative territory (now is down 36 points)
the pair has failed in breaking 77.00 and bounced from it , so that's mean the down trend is expected and the pair might head to 76.30 and then 76.00
Prices put in a pair of Doji candlesticks at 76.28, the 76.4 percent Fibonacci extension support level, pointing to indecision above the pair’s record low, hinting a correction higher may be ahead.
we can notice from the chart that the pair has closed under 77.00 , that's mean the down trend is expected and the pair might head to 76.50 then 76.20 , however the pair made a hourly correction
the dominant trend remains bearish and S&P 500 positioning points to broad-based risk aversion, arguing for further weakness over the coming weeks (albeit not without a threat of intervention). A clear-cut entry point in either direction is not apparent for now and we will stand aside.
With the BOJ clearly stating that they favour a return of the currency towards 85 or even higher. We believe the downside in minimum whilst the topside will find stale USD long selling on bounces
The pair temporarily fell to pre-intervention level amid an influx of safe-haven related flows as market participants continued to fret the never ending uncertainty over the global economy. In particular, there is growing concern that the actions taken by EU leaders are simply not enough to promote stability in the debt ridden states
Prices put in a pair of Doji candlesticks at 76.28, the 76.4 percent Fibonacci extension support level, pointing to indecision above the pair’s record low, hinting a correction higher may be ahead
the pair and as we can see from the chart has closed it's daily candle under the level of 77.00 , so , that's mean the down trend is still standing and the pair is heading to 76.60 then 76.40
USD/JPY dropped to as low as 76.30 last week but lost momentum ahead of 76.28 support and turned sideway. Nevertheless, further fall is still expected with 77.32 minor resistance intact