USDJPY corrects along with the dollar

6 giorni fa

USDJPY is falling after a false breakdown. But, most likely, the fall of the dollar index, which happened after the change of the political position of the US leadership, also had a huge impact here. The index is likely to continue its fall and this will help the currency pair to fall even further

Scenario: support 151.0 is ahead, from which a rebound to resistance 152.4 - 153.18 is possible, but in the medium term, as we have a change in the fundamental background, we can expect a continuation of the fall. The focus in this case is on the support 151.47 - 159.9. A breakdown of this zone may weaken the price to 148.8

5 giorni fa

Trade attivo

1. Global trend
The daily chart (left) shows that the price is in a downtrend after touching the 160,000 area.
On the 4H chart (right), the price is in a downtrend, forming declining peaks and lows.

2. Local trend and key levels
Resistance: 153.184 - Fibonacci 0.5 level and downtrend line.
Support: 150.951 - blue uptrend line level, possible buying zone.
Global Support: 148.795 - key level below the current price.

3. Dollar Index (DXY)
The DXY (bottom left) is sideways near 106.800.
Further movement in the dollar index will affect the USD/JPY exchange rate:
If the DXY starts to rise, USD/JPY could strengthen.
If DXY declines, USD/JPY is likely to break the support at 150.951.

4. expected scenario
A rebound from the current levels to the resistance at 153.184 is possible.
If the price breaks the support at 150.951, we expect a test of 148.795.
It is important to keep an eye on the dollar index and the price reaction to the trend lines.
What do you think, will this set-up play out or are you waiting for confirmations?