Forex Marketz Daily Forex News – Fully Markets Update
Looking at the Japanese yen (JPY) on the above USD/JPY daily MT 4 price action chart, the U.S. dollar remains in a descending channel that has dominated price action since last March.
The economic calendar is quite void of high impact events to start the new trade week off. The United States and their financial markets are closed for the Martin Luther King Jr. day holiday.
Japan is publishing monthly industrial production data and the European Union will see their Euro Group meeting start. The United Kingdom has no economic data on the calendar for Monday.
Japanese yen and other currency traders are watching politics out of the United States closely. On Wednesday, President-elect Joe Biden will be inaugurated into office. This comes a week after armed insurrectionists stormed the U.S. Congress after being riled up by outgoing President Donald Trump who was impeached for an unprecedented second time for his role in that insurrection.
President Donald Trump has refused to attend President-elect Joe Biden’s inauguration on Wednesday. It is unclear when the Senate will start Trump’s trial.
Looking at price action, a resurgent U.S. dollar remains somewhat in control over the Japanese yen. Forex traders should note the descending channel could still cap the recovery until a daily and sustained close above the top of the channel.
Daily Japanese Yen Technical Analysis (USD/JPY)
Looking at the 14 day relative strength index (RSI), which is just above the mid-line, is signaling strength for the U.S. currency in the USD/JPY Forex market.
The first downside barrier for the Japanese yen is at the short-term 21 day simple moving average at 103.54 yen. The next downside barrier lines up at 103.50 with the round number of 103 yen then coming into focus.
On the upside the one hundred day (100) simple moving average at 104.62 yen is near-term resistance. The next layer of technical resistance lines up at the two hundred day (200) simple moving average at 105.80 yen.
