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USDJPY tumbled to a 2-mth low before settling at 111.30

Market Analysis

USDJPY, Daily

USDJPY extended the sharp decline of yesterday, logging a two-month low of 111.06 in a thin Asia-Pacific session, lacking Tokyo participation due to Japan’s version of thanksgiving, before settling around the 111.30 mark. EURUSD logged an eight-day high of 1.1839 while the USD index (DXY) concomitantly fell to a one-month low. In USDJPY, a Short position was taken in a Daily time-frame, at 111.25, after the pair broke the neckline at 111.73, dropping at 2 months low and creating with this way a rounding top in the Daily chart. Significant is the fact that the neckline is also a confluence of 200-Day MA. Hence pair is currently traded below 20, 50 and 200 Day Moving averages, while it has created a triple top formation in this year at 114.50. The drop of a 115 pips yesterday along with momentum indicator turning lower, indicates that bears have gain major control.

The RSI is oscillating at 30s, while MACD and Stochastic turned lower, with Stochastic at oversold Territory and MACD lines moving below neutral. Hence Daily Targets were set in themid of 50.0 & 61.8 Fibonacci level , at 110.55 and at 110.00. Support is at 111.90.

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Andria Pichidi

Market Analyst

HotForex

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