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USDJPY could find leeway to rise, after PBOC's decision

Discussion in 'Current Market Sentiments' started by fx-recommends, Jan 18, 2016.

  1. fx-recommends

    fx-recommends Content Contributor

    Aug 6, 2008
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    USDJPY Daily 18-01-2016 07-34-24 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.

    USDJPY has been exposed to increasing downside momentum by the end of last week to fall to 116.49 containing its full rebound from 116.67 which ended to having another lower high at 118.36.

    The Japanese yen gains 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.

    So, USDJPY could rebound for trading now near 117.20 in the beginning of the new week following PBOC step to impose reserve ratio on offshore Yuan accounts.

    USDJPY daily RSI is referring now to existence barely in its oversold area below 30 reading now 29.622, while its daily Stochastic Oscillator (5, 3, 3) which is more sensitive to the volatility could have its main line in the neutral region coming up from its oversold area below 20 reading now 44.514 and also its signal line is reading now 46.578.

    USDJPY daily Parabolic SAR (step 0.02, maximum 0.2) is reading 118.27 in its day number 17 of consecutive being above the trading rate reflecting accumulating of the downside pressure on this pair.

    Important levels: Daily SMA50 @ 121.19, Daily SMA100 @ 120.73 and Daily SMA200 @ 121.50


    S1: 116.49
    S2: 116.15
    S3: 115.55
    R1: 118.49
    R2: 118.81
    R3: 119.68

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

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

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