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The risk appetite rebound could dampen the demand for JPY

Discussion in 'Current Market Sentiments' started by fx-recommends, Jan 8, 2016.

  1. fx-recommends

    fx-recommends Content Contributor

    Aug 6, 2008
    Likes Received:
    USDJPY Daily 08-01-2016 06-52-05 ص.jpg
    The equities recovery which has been obvious during the Asian session could help USDJPY to rebound for trading near 118.30, after falling extension to 117.31.

    USDJPY has been already depressed by ending side way of trading between 121.21 and 123.74 by breaking its lower band at 121.21 and after failing to re-enter this trading barrier, it formed last week another lower high at 120.64 to fall further.

    This pair faced increasing downside momentum following breaking of 120 psychological level this week with the Japanese yen ability to gain benefits from the Chinese Yuan suffering, as an Asian competitive reserve currency, while there is no signal yet from BOJ to take further easing steps.

    Despite the rebound from 117.31, USDJPY daily Stochastic Oscillator (5, 3, 3) which is sensitive to the volatility is having now its main line in the oversold area below 20 reading now 18.044 and also its signal line which is reading now 16.973.

    The pair daily Parabolic SAR (step 0.02, maximum 0.2) is reading now 121.23 in its day number 11 of consecutive being above the trading rate to reflect accumulating downside pressure on this pair.

    Important levels: Daily SMA50 @ 121.68, Daily SMA100 @ 120.90 and Daily SMA200 @ 121.59


    S1: 117.31
    S2: 116.15
    S3: 115.55
    R1: 119.68
    R2: 120.64
    R3: 121.49

    Have a good day

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

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

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