Overview: The pair drops to the day intraday low of 103.45, as the market in Tokyo opens for Monday trading. The pair recently declined after Japan’s industrial production data pleased yen buyers while the US dollar bears the burden of recent risk-on mood. Further, Bank of Japan’s (BOJ) Summary of Opinions for the December meeting exert additional downside pressure on the USD/JPY prices. The statement suggests that the policymakers are up for further easy money. The pair is moving towards the downside. The bears are making their side towards the strong bearish side and moving towards the downside pair in the market.
They are getting major pullback from the downside in the market. it should, however, be noted that the statement suggesting” Watching the risk of abrupt moves in the FX market,” indicates the BOJ’s readiness to restrict further strengthening of the Japanese yen (JPY), which in turn should challenge the USD/JPY bears. So, we are looking forward to negative volatility in the market and the pair is making the ascending channel pattern in the market. Looking forward also to bearishness in the market. Japan’s Preliminary Industrial Production recovered on YoY, BOJ Summary of Opinions for December meeting favors extension of easy money policy.US President Trump’s teasing of ‘good news’ on stimulus bill recently lifted the mood. Off in major markets, light calendar, and holiday season to restrict the moves.
Technical Analysis: From the technical point of view, we can say that market is gaining lots of negative volatility this time. Gross domestic product in the United States rebounded at a 33.4% annualized rate last quarter, the Commerce Department said in its third estimate of GDP. the technical bias should remain bearish as long as 105.44, the market pair printed a lower low in the recent downside move. On the daily chart, we can see that market is falling and the indicators will also be supporting the price pattern.
The RSI will move below the 50 levels and creates the bearishness in the chart as well as MACD will move below the zero lines and creates the sell signals in the market. odds are in favor of the market and the EMA lines will also below the major SMA lines. So, we can say the downside movements will remain in the market and the sellers can go for sell in the market for the longest time. The support of the pair is 103.20 followed by 102.71and resistance is 104.00 followed by 104.50
Trade Idea: we can conclude from the above discussion that the market will go for Sell at level 103.53. target will be 102.43 -101.45 and stop loss will be 104.73.
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