- July 24, 2020
- Posted by: cabana-admin
- Category: Forex Broker
Overiview : By analyzing the daily technical chart we can see that pair is falling down after so many choppy session. The way pair is falling down it seems like this time pair will break the 105.90 level successfully. Let’ see what happen ?
Well we would suggest our readers that wait for the clear breakout of the 105.90 level however we got bearish signal at initial stage but we would suggest to our readers that wait for clear breakout. On the hourly chart we can see that only bears are visible or we can say that a red blood bath is going on with full of bearish momentum. The bears got the charge from 109.84 level to 106.30 level and still bears have full control on the game and heading towards south side.
USD/JPY once again failed near 50-day SMA hurdle amid reviving safe-haven demand. Escalating US-China tensions weighed on investors’ sentiment and benefitted the JPY. The intraday slide seemed rather unaffected by a modest pickup in the USD demand.
The pair has now dropped to the lower end of a multi-day-old trading range and a subsequent slide below the 105.90 will set the stage for a further intraday depreciating move amid absent relevant market moving economic releases from the US. Well the way bears are reacting it seems like they are doing mind blowing job for the time being and they get more active below the 107 level.
Technical Analysis:- From technical prospective we can see that pair is trading below all the major and minor EMA lines on daily as well as 4 hourly chart which is providing us bearish signal itself. A triple top pattern has been formed on the 4 hourly chart which is providing us bearish signal. The 105.90 level is the only stumble block for bulls which is last hope of bulls, if bulls today trades and settles below this level then the 105 and 104 level will be soft target for bears like a cake walk.
A bearish crossover on the MACD indicator is generating bearish signal for the time being and RSI is also favoring the bears for the time being. The 105.90 level seems as key support level followed by 105.00 level whereas 107.40 is key resistance level followed by 108.20 level. Odds are in favor of bears. Intraday bias remains bearish on the pair as long as 107.50 level remains intact.
Trade idea:- Based on chart and studies above we would recommend that one should go for short around 106.50-45 level for the target of 105.50 and 104.00 sl is 107.50 level.
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