The Japanese yen continues to trade within a wide range. Yesterday, it closed more than 140 pips above its opening level. We can assume that this was a battle between buyers and three technical resistances: the target level of 138.78, the blue line of the price channel, and the 23.6% Fibonacci retracement level.
The daily trading volumes for the pair were below the daily averages, while those for other major currencies were either average or slightly above average. In fact, there was no significant struggle in the yen’s case, although we observed good volatility. However, the yen crosses (GBP/JPY, EUR/JPY) saw increased volumes, but the day ended with minor results. As a result, we can assume that the USD/JPY pair will continue to have a pull through its cross rates. Consequently, we expect the price to reach the target level of 140.35, which almost coincides with the 38.2% Fibonacci retracement level.
On the four-hour chart, the price is consolidating around the target level of 138.78. Yesterday, the balance indicator line limited the pair’s growth, indicating that the growth was corrective. Therefore, reaching the nearest target at 140.35 falls within the framework of a correction, which requires increased market participants’ attention. In addition, the MACD line is approaching the 140.35 level, and the downward movement (towards the target of 135.15) may resume from that level. If the price consolidates above 140.35, it will bring back the uptrend towards the target of 142.30.
The material has been provided by InstaForex Company – www.instaforex.com
USD/JPY:
The Japanese yen continues to trade within a wide range. Yesterday, it closed more than 140 pips above its opening level. We can assume that this was a battle between buyers and three technical resistances: the target level of 138.78, the blue line of the price channel, and the 23.6% Fibonacci retracement level.
The daily trading volumes for the pair were below the daily averages, while those for other major currencies were either average or slightly above average. In fact, there was no significant struggle in the yen’s case, although we observed good volatility. However, the yen crosses (GBP/JPY, EUR/JPY) saw increased volumes, but the day ended with minor results. As a result, we can assume that the USD/JPY pair will continue to have a pull through its cross rates. Consequently, we expect the price to reach the target level of 140.35, which almost coincides with the 38.2% Fibonacci retracement level.
On the four-hour chart, the price is consolidating around the target level of 138.78. Yesterday, the balance indicator line limited the pair’s growth, indicating that the growth was corrective. Therefore, reaching the nearest target at 140.35 falls within the framework of a correction, which requires increased market participants’ attention. In addition, the MACD line is approaching the 140.35 level, and the downward movement (towards the target of 135.15) may resume from that level. If the price consolidates above 140.35, it will bring back the uptrend towards the target of 142.30.
The material has been provided by InstaForex Company – www.instaforex.com
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