Jump to content
AskTraders Trading Community
  • 0

Are we to see the USDJPY retest this months lows?


Guest Sam Bouman

Question

2 answers to this question

Recommended Posts

  • 0

With the USDJPY currently sitting at the 111.50 area to answer this question we will first have to look at the technical aspects, price action and structure etc and then move on to what may move the pair fundamentally.

So looking at the daily structure I can see that the price seems to be obeying a nice downward trend line since around the 12th of December, currently price is sitting at the high of this trend line. If we move onto a lower time frame in the 4 hour chart we can see that price has consolidated at the current level since the beginning of the week which tells me that there is a little caution about where price will move next or that there isn’t enough buying momentum to help it push through the trend line as of yet. 

So that is where we are at structurally, now we need a catalyst to actually move the market in the form of fundamentals, current economic issues that may cause the pair to move are US China trade talks and whether the global economy will be able to pick up after the recent downturn. We have seen some slightly improved numbers come out over the past week from Europe and China which is a sign for encouragement but may not be enough to give us enough of an edge when looking at this pair. My main focus will be on the trade talks, there are rumours that Trump and Xi Jinping will be meeting this Thursday and this could potentially mean a deal has ben struck between the two nations which would cause a risk on situation in the markets and a buy side opportunity for the pair.

My suspicions are still that a deal is still a way off and depending on which way it goes I will bide my time before choosing a directional bias with this pair.

Link to comment
Share on other sites

Join the conversation

You can post now and register later. To reply to this question, sign in or create a new account.

Guest
Reply to this question

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

×
×
  • Create New...