- January 8, 2021
- Posted by: cabana-admin
- Category: forex trading
Overview: USD/JPY picks up bids near 103.92, up 0.08% intraday, during early Friday. The yen pair jumped the most since early November the previous day after Japanese Prime Minister (PM) Yoshihide Suga announced an emergency in Tokyo and three surrounding areas due to the coronavirus (COVID-19). Backing the upside moves recently is the news suggesting the US Congress push for President Donald Trump’s immediate resignation even as Vice President Mike Pence safeguards the National Leader after his supporters stormed the Capitol Hill.
The news smoothens the way for Democrats and further stimulus, which in turn favor risks off-late. The pair is creating the movement towards the higher highs in this session. The pair travels towards a higher position in the market. Moving on, risk news mainly from the US will be the key ahead of the American employment data for December. The pair moves towards the positive side in the market. the buyers can set towards the buy-side in the market. USD/JPY prints a three-day winning streak with mild gains at Tokyo’s open. Risks remain positive amid US stimulus hopes, light calendar.US NFP, $2,000 paycheck, and Trump’s impeachment in focus.
Technical Analysis: We can conduct from the technical point of view that the market can be set towards the market point of view. The pair suggests bull’s entry in the market. The USD/JPY pair is trading in the 103.80 regions, having reached overbought conditions in the near-term. The 4-hour chart shows that the pair is above all of its moving averages, with the 20 SMA advancing below the shorter ones. The technical indicator has reached overbought readings, losing their bullish strength but still far from signal a reversal. Further gains are likely if the pair manages to extend its gains beyond 104.00. on the daily chart, we can see that the price pattern is rising towards the higher side in the market and the indicator is also supporting the side of the bulls in the market. The RSI is also rising above 50 level and creating bullish signals. The current status of the market is 103.87 and the support is 103.50 followed by 103.00 and resistance is 104.50 followed 105.00
Trade idea: we can conclude from the above statement that we can buy according to the level 103.87 and target will be 104.81-105.51 and the stop loss is 103.17.
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