Forex Marketz Daily Forex News – Fully Markets Update
USD/JPY (¥108.993)
- Resistance Levels: 110.10, 110.75, 112.10
- Support Levels: 108.45, 107.30, 106.50
The almighty buck has resumed its uptrend against Japan’s Yen. This was expected as we note, on the above MT 4 daily USD/JPY chart, a bullish reversal signal. This is the morning star a couple of days back.
The technical analysis for today, we need a daily close above the congestion area that begins at 109.68 and ends at 110.10. If this happens we will challenge 110.75. Should the dollar lose ground, again, we are eying the congestion area from 108.45 to 108.60. A close below these levels will target 107.30.
Let’s discuss some trading strategy. Remember this is for educational purposes and not trading advice. Entering a long position looks really good right now, however, I am standing aside. Why? Let’s look at the below 4 hour chart. Note the ebbing momentum at the current price level? This leads into the bigger why. The Fed just announced the end of their quantitative easing program (QE) and the dollar has jumped higher on risk aversion and rather hawkish comments by the Federal Open Market Committee (FOMC) members. The risk aversion now comes in with looming short covering as larger investors, like hedge fund managers, initiate carry trade selling as they re-position their portfolios. This means the USD/JPY could be in for another slide.
