USDJPY consolidates in narrow trading range near highest level since January 2017

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USDJPY

USDJPY moved up to test the end of 2016 / early 2017 highs

As the news of an earthquake in Japan and a subsequent tsunami warning resonates through the news wires (7.3 is quite significant – so far no problems with a nuclear reactor), the USDJPY

USD / JPY

The USD / JPY is the currency pair comprising the United States dollar (symbol $, code USD), and the Japanese yen of Japan (symbol ¥, code JPY). The pair’s exchange rate indicates how many Japanese yen it takes to buy one US dollar. For example, when the USD / JPY trades at 100.00, it means that 1 US dollar is equivalent to 100 Japanese yen. The US dollar (USD) is the most traded currency in the world, while the Japanese yen is the third most traded currency in the world, resulting in an extremely liquid pair, and very narrow spreads, often remaining within the 0 pip to 2 pip spread range. at most. forex brokers. Although the USD / JPY range is not traditionally particularly high, the lack of large price action often associated with other JPY pairs makes it easier to trade. This is especially true for short-term traders, albeit without offering an excellent pipe. potential. Although the USD / JPY is the second most traded pair in the world, it is not as popular as one might think in terms of retailers. The couple has a reputation for being “boring”, although this is not an entirely accurate reflection. USD / JPY trading The JPY is highly regarded as a safe haven currency, with investors often increasing their exposure after periods of uncertainty or market-induced falls. Because both the United States and Japan are highly developed economies, there are several key factors influencing value. of both currencies. This includes a range of economic indicators such as gross domestic product (GDP) growth, inflation, interest rates and unemployment data. Monetary policy of the US Federal Reserve and Bank of Japan are also major determinants in the value of each currency.

The USD / JPY is the currency pair comprising the United States dollar (symbol $, code USD), and the Japanese yen of Japan (symbol ¥, code JPY). The pair’s exchange rate indicates how many Japanese yen it takes to buy one US dollar. For example, when the USD / JPY trades at 100.00, it means that 1 US dollar is equivalent to 100 Japanese yen. The US dollar (USD) is the most traded currency in the world, while the Japanese yen is the third most traded currency in the world, resulting in an extremely liquid pair, and very narrow spreads, often remaining within the 0 pip to 2 pip spread range. at most. forex brokers. Although the USD / JPY range is not traditionally particularly high, the lack of large price action often associated with other JPY pairs makes it easier to trade. This is especially true for short-term traders, albeit without offering an excellent pipe. potential. Although the USD / JPY is the second most traded pair in the world, it is not as popular as one might think in terms of retailers. The couple has a reputation for being “boring”, although this is not an entirely accurate reflection. USD / JPY trading The JPY is highly regarded as a safe haven currency, with investors often increasing their exposure after periods of uncertainty or market-induced falls. Because both the United States and Japan are highly developed economies, there are several key factors influencing value. of both currencies. This includes a range of economic indicators such as gross domestic product (GDP) growth, inflation, interest rates and unemployment data. Monetary policy of the US Federal Reserve and Bank of Japan are also major determinants in the value of each currency.
Read this Term remains within a narrow trading range near the highest level since January 2017. The high price today reached 118,422. The high price reached 118,444 yesterday.

Going back to December and January 2016/17, the swing highs then reached 118.65 and 118.60 respectively (see weekly chart above). High prices yesterday and today are approaching those levels. A break above would increase the bullish bias and send the price into the higher end area of ​​late 2014, most of 2015 and early 2016, which saw the price peak at 125,851 (see red shaded area in the chart above).

Today, the low to high trading range is limited to only 26 pips. The average for the last 22 trading days was 66 pipes (about a month of trading). There is room to wander and it looks like the market is waiting for the next shift (from the FOMC decision?). However, the buyers certainly remain more in control due to the narrow reprimand.

Yesterday the trend move to the top showed a few cracks after breaking back below its 100 and 200 bar moving averages on the five-minute chart (see blue and green lines in the chart below).

However, the price decline was modest (between 38.2 – 50% of the move up from the last ledge near 116,788) returned to closing, and the price action today saw a non-trend bias with the pair trading up and down . its 100 and 200 bar moving averages.

USDJPY

USDJPY consolidates recent gains

Also noteworthy yesterday from a technical perspective is that the price decline has stalled right near the bottom of the broken trend that occurred on Monday. The inability to move back below that trend is another bullish signal that is holding the technical tilt to the top (until broken). This trend line is at 117.78 today (and is moving higher daily).

USDJPY

USDJPY stayed above the broken trend line

Summary: There are various indications of the 5-minute, daily and weekly letters today.

Clearly, the market is breathing ahead of the FOMC, but despite the correction yesterday, buyers are still holding more control (above the broken trend line on the daily chart at 117.78).

That said, surpassing yesterday’s high and surpassing the 118.60-118.65 area is still a key hurdle and would increase the bullish bias during a break – taking the pair to the high end for most of 2015. Moving below 117.78 (broken). trend line) would begin to weaken the technical view and should lead to more downside sounding.

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