Blog post

Technical Analysis: USDJPY weighs down by fresh risk-off despite BOJ's inaction

USDJPY revisits sub-110.00 area as fears of China's coronavirus and IMF's downgrade of global growth forecast superseded the BOJ's upward revision to GDP forecasts and no change in the current monetary policy. The pair now seems to decline towards December month high near 109.70 ahead of testing 109.35 support confluence that includes 21-day SMA and 61.8% Fibonacci retracement. If at all bear remain dominant past-109.35, 109.00 and 50% Fibonacci retracement level near 108.40 will be on their radar.

If prices flip from the current levels, an upward sloping trend line since early-November, at 110.35 now, becomes the key resistance as a break of which could propel the quote towards May 2019 top close to 110.70. Assuming the pair's rise above 110.70, 111.00, 111.80 and 112.20 can offer intermediate tops ahead of highlighting 2019 high near 112.40 for the bulls.

Join us on FB and Twitter to stay updated on the latest market events.