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​Technical Analysis: USDJPY again confronts 100-day SMA amid surprise risk-on

With the global markets turning the focus away from the surge in the coronavirus (COVID-19) numbers and the US-China tension, expectations of the further monetary/fiscal support triggered risk-on mood during the early Monday. As a result, the risk barometer USDJPY registers another attempt to cross a 100-day SMA level of 107.80. However, normal RSI conditions and repeated failures to slip below 107.30 immediate support favors the bulls. Hence, the bulls can witness a sustained break above 107.80 this time, which in-turn will highlight 108.50 as a buffer ahead of the falling trend line from March month's top, at 109.15 now.

On the contrary, the pair's weakness past-107.30 could revisit a 50% Fibonacci retracement level of 106.40. Though, the May month low near 106.00 becomes strong downside support to watch afterward. If at all the sellers keep the helm below 106.00, 61.8% Fibonacci retracement level around 105.25 might become their favorite.

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