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USDJPY came under pressure by dovish risk appetite

Discussion in 'Current Market Sentiments' started by fx-recommends, Jan 11, 2016.

  1. fx-recommends

    fx-recommends Content Contributor

    Aug 6, 2008
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    USDJPY Daily 11-01-2016 06-19-58 ص.jpg
    USDJPY could have the most volatile reaction to the US labor report on its sensitivity to the risk appetite.

    After the release of Dec US labor report, USDJPY spiked to 118.81 to form another lower high to fall from again and with the beginning of the new week in has made another lower low at 116.67 below 117.30 which could stop it by the end of last week.

    USDJPY has opened the new week on a downside gap at 117.14, before extending its losses to 116.67 whereas it could bounce up to fill this gap trading again close to 117.30.

    USDJPY daily RSI is referring to existence in its oversold area below 30 reading now 21.402 and also its daily Stochastic Oscillator (5, 3, 3) which is more sensitive to the volatility is having now its main line in its oversold area below 20 reading 12.061 and also its signal line which is reading now 10.594, despite the rebounding from 116.67 to correct some of its oversold stance.

    USDJPY is now in deeper place below its daily SMA 50, daily SMA100 and daily SMA 200 and its daily Parabolic SAR (step 0.02, maximum 0.2) is reading 120.68 in its day number 12 of consecutive being above the trading rate to reflect accumulating of the downside pressure on this pair.

    Important levels: Daily SMA50 @ 121.59, Daily SMA100 @ 120.88 and Daily SMA200 @ 121.57


    S1: 116.67
    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

    To open your account at Trade-24 - Click here

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