The pandemic continues hurting economic activity in China, the war in Ukraine is hitting the entire European economy, and the Fed's efforts to control inflation threaten to trigger a recession.
USD/JPY: target for selling
2020-09-14 • Updated
The US dollar looks vulnerable versus the Japanese yen. As you can see, the resistance line is limiting USD/JPY on the upside and, unless the pair tries for a breakout (which anyway will meet resistance at 106.50 and 106.80), the easiest path for it will be to go down. The pair formed a lower high and is already testing levels below 106.00. On the H4, the support line is at 105.75. The decline below it will open the way down to 105.30 (August support area). This bearish scenario is in line with the negative expectations traders have ahead of the FOMC meeting on Wednesday.
Trade idea for USD/JPY
SELL 105.70; TP 105.30; SL 105.85
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