USD/JPY Potential Retest of the Lower Channel Trend Line
Source: Admiral Markets MT5 with MT5SE Add-on 17.09.2018 10:00 AM
The USD/JPY currency pair is trapped within the equidistant bullish channel. As the risk-off continues across Asian Equities today, the question has become whether the last few days of the last week was a dead cat bounce in European Equities or not, whilst the US equities remained strong. This mixed sentiment may weigh USD into range. Geopolitics is still a focus for markets and we might see plenty of catalysts this week that might re-ignite various concerns. Additionally, recent reports have indicated that the Bank of Japan (BOJ) may re-adjust their policy settings at their next meeting might weigh somehow on the JPY. If the BOJ mentions its monetary policy tightening - it might help in the USD/JPY currency pair going lower.
Technically, 111.90-112.00 is the mid-line between the Admiral Daily Pivot and Admiral Resistance so the rejection is possible. The target is the POC zone around 111.50 where the pair might bounce. However, a drop below the POC suggests a further drop in the USD/JPY towards the S3 line around 111.35. If we see a bounce from the POC zone, the next targets could be 112.00 and 112.30.
Short Pivot Lines - Daily Support and Resistance
Long Pivot Lines - Weekly Support and Resistance
POC - POC - Point Of Confluence (The zone where we expect the price to react - aka the entry zone)
This material does not contain and should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments. Please note that such trading analysis is not a reliable indicator for any current or future performance, as circumstances may change over time. Before making any investment decisions, you should seek advice from independent financial advisors to ensure you understand the risks.
