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USDJPY could bounce up with the risk appetite rebound

Discussion in 'Current Market Sentiments' started by fx-recommends, Jan 21, 2016.

  1. fx-recommends

    fx-recommends Content Contributor

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    USDJPY Daily 21-01-2016 06-38-56 ص.jpg
    The risk aversion sentiment could boost demand for the Japanese yen, as this low cost financing currency usually gains benefits during the dovish market sentiment.

    The Japanese yen could also gain benefits recently from the Chinese Yuan suffering, as an Asian competitive reserve currency, while there is no signal yet from BOJ to take further easing steps.

    USDJPY has been exposed to increasing downside momentum to reach 115.96 surpassing last Aug. 24 low at 116.15, before rebounding to 117.46 during today Asian session.

    But this containing cannot be reliable to go further to the upside without bringing down 118.36 which could hold in the face of the pair tries to rise in the recent 9 days to be exposed to forming lower highs below it.

    USDJPY daily Parabolic SAR (step 0.02, maximum 0.2) is reading 118.10 in its day number 20 of consecutive being above the trading rate.

    While USDJPY daily RSI is referring now to existence barely in the neutral region coming from its oversold area below 30 reading now 31.394 and also its daily Stochastic Oscillator (5, 3, 3) which is more sensitive to the volatility could have its main line in the neutral region reading now 49.134 and also its signal line is reading now 46.589.

    Important levels: Daily SMA50 @ 120.84, Daily SMA100 @ 120.65 and Daily SMA200 @ 121.48

    S&R:

    S1: 115.96
    S2: 115.55
    S3: 114.87
    R1: 118.36
    R2: 118.81
    R3: 119.68


    Have a good day

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

    walid.s@trade-24.com
    Tel: UK. +44 1138590277
    Mob: EGY. +20 1224659143
    Archive:
    http://www.trade-24.com/daily-analysis

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