Robust Japanese GDP data at 1.9 percent hasn’t led the currency to appreciate much as the Yen traders watch for outcome of the trade talks with the world’s largest economy. The talk’s focus is on reducing import tariffs on cars along with the intention to proceed with bilateral negotiations. While retaining focus on achieving the 2 percent inflation target, the Bank of Japan may be under pressure to shift its accommodative policy stance.
Technically, Yen has been trading in a channel for the past 4 months since March end when it tested 104.5 against the greenback. The Japanese currency has nicely moved within a channel since then and is now testing the support of this channel; though the channel resistance line (marked in green) hasn’t been touched for the past 2 months. An even shorter 1 month resistance trend line (marked in red), shows the point of convergence for these short and medium term lines. Note the declining volume in this short period, showing a weaker support to break past this channel.
We expect an appreciating dollar in line with our long term view in our earlier research -
Though a significant close below 111 will indicate a channel break and could head further down towards its 38.2% Fibonacci retracement level of 110.5.
#channelsupport #technicalanalysis #USDJPY #myforexeye
22 Apr 2019 06:20 PM
On the daily chart - it is found that the prices have finally broke down the converged
18 Apr 2019 06:45 PM
After posting superlative gains in March, due to resurgent FII inflows, rupee has been range-bound
16 Apr 2019 06:10 PM
With a look at Silver chart shows that price action took resistance at $14.92 levels in July’18, October’18
15 Apr 2019 05:46 PM
A look at the daily chart is showing that USDINR is trading in between the range of a downward sloping trend channel
12 Apr 2019 06:53 PM
Indian exporters are a worried lot these days. USDINR around 69, EURINR at 78 and GBPINR near 90-91
11 Apr 2019 06:26 PM