February 2, 2023

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USDJPY snaps back

1 min read

Higher stocks/yields reverses the earlier declines

With the Markit PMI preliminary data solidly above the 50 levels and the New home sales surging, the US stocks have rebounded with the Nasdaq leading the way. Also higher are US yields. Gold has also reversed lower and trades down over $10 now.  

Higher stocks/yields reverses the earlier declines
Those moves have also reversed the USDJPYs fortunes after breaking below trend lines on the hourly and daily charts at the start of the NY session. The price has since moved back above the broken trend lines near 107.67. It has also moved back above the broken 38.2% of the 2021 trading range at 107.76 (see earlier post here). 

What now?

The 100 hour MA remains a key level on the topside. That MA was tested yesterday and found sellers. The MA comes in at 108.068 currently. It will still take a move back above that level to tilt the bias more to the upside.

On the downside, the trend lines around 107.67 remain a downside risk and bias defining level. Closer support is the 38.2% of the 2021 range at 107.76.  

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