- June 7, 2021
- Posted by: cabana-admin
- Category: Forex Broker, Market Insights
- USD/JPY extends the previous week’s losses on Monday.
- Lower US Treasury yields undermine the demand for the US dollar.
- Yen suffers from its downbeat economic outlook.
General overview: The USD/JPY pair trades on a muted tone on the first trading day of the new week. The pair extends the previous week’s losses and remains subdued. The US Dollar Index (DXY), which tracks the greenback movements against the basket of six major’s currencies, retreated from its high near 90.60 on Friday after the disappointing Payroll data. The greenback moved in the tandem with the US benchmark 10-year yields, which traded at 1.56% following the data. The pair may loss its volatility in the market and makes the bearish view towards the market. The pair makes the low volatility in the market and makes the low volume in the market. This is turning the good opportunity towards the market for the selling view. The pair is making potential bearish view towards the market as the strong bearish candle formed.
Technical analysis: From the technical point of view we can say that market makes the selling sell signals in the market. After the NFP data we can see that extension of lockdown, as the vaccine is still struggling with the rising coronovirus cases, hinted at a poor vaccine rollout program. The momentum is towards the low side of the momentum in the market. The bears are influence the pairs performed towards the bearish side in the market. The pair makes the extension of low side volatility towards the market, on the 4 hourly chart market makes the selling side towards the market as the market makes the selling signals towards the market , the potential EMA and SMA will lead towards below the sell side towards the market. The RSI also makes the opportunity below 50 level as well as MACD will lead towards the zero level in the market.
Trade idea: Our traders will sit towards the sell side in the market entry level will be 109.42 target will 108.80 , 108.40 and stop loss will be 110.00