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Technical Analysis: USDJPY stays inside short-term rising channel despite disappointing Japan Q4 GDP

With the preliminary readings of Japan's Q4 GDP snapping the previous four quarters' winning streak, fears of an upcoming recession, mainly due to China's coronavirus, threatens the Asian traders. However, USDJPY seems to pay a little heed to the data considering the Japanese yen's safe-haven demand. In doing so, the quote stays inside a short-term rising trend channel, currently between 109.60 and 110.15. Also limiting the pair's downside is a 200-bar SMA level of 109.35 as well as late-January top surrounding 109.30/25.

On the upside, pair's sustained run-up beyond 110.15 is likely to be challenged by weak MACD and the channel's resistance, if not then the yearly top near 110.30 will be in focus. If at all the bulls manage to dominate past-110.30, May 2019 high near 110.70 will be on their radars.

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