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The oil slide brought back the pressure on USDJPY

Discussion in 'Current Market Sentiments' started by fx-recommends, Feb 2, 2016.

  1. fx-recommends

    fx-recommends Content Contributor

    Aug 6, 2008
    Likes Received:
    USDJPY Daily 03-02-2016 04-56-18 ص.jpg
    With the oil prices slide again, The US major stocks indexes came under increased down side pressure yesterday, after it had been tempered by The Fed's Vice President Stanley Fischer's comments that it is too difficult to gauge the impact on the U.S. economy from the recent turmoil in financial markets and the uncertainty over China.

    The risk aversion could bring USDJPY back below 120, after it had been boosted to reach 121.67 by BOJ's surprising decision to lower the interest rate to -0.1% to work with its monetary base expansion by 80 trillion yen annually for achieving the 2% price stability yearly target at the earliest possible time.

    The risk-off sentiment could boost demand for the Japanese yen, as this low cost financing currency usually gains benefits during the dovish market sentiment.

    USDJPY which has peaked out at 121.67 has fallen again below its daily SMA200, daily SMA100 and daily SMA50.

    USDJPY is now trading near 119.60 keeping existence above its daily Parabolic SAR (step 0.02, maximum 0.2) which is reading today 117.26 in its ninth day of continued being below the trading rate.

    USDJPY daily RSI is referring now to existence in the neutral region reading now 52.639 and also its daily Stochastic Oscillator (5, 3, 3) which is more sensitive to the volatility is having its main line in the neutral area coming from the overbought area above 80 to read now 59.112 leading to the downside its signal line which is reading now 72.526.

    Important levels: Daily SMA50 @ 120.21, Daily SMA100 @ 120.60 and Daily SMA200 @ 121.49


    S1: 118.48
    S2: 117.64
    S3: 116.45
    R1: 121.67
    R2: 123.74
    R3: 124.61

    Have a good day

    Walid Salah El din
    Senior Market Analyst
    Skype : chief.economist.walid

    Tel: UK. +44 1138590277
    Mob: EGY. +20 1224659143

    To open your account at Trade-24 - Click here

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