USD/JPY is declining for the fifth day in a row. When the pair fell below 105.00, it entered a new, lower range.
USD/JPY: the Bulls can’t maintain uptrend
Technical levels: support – 112.40/50; resistance – 113.00.
- Sell — 112.70/80; SL — 113.00; TP1 — 112.00; TP2 — 111.50.
Reason: narrow bullish Ichimoku Cloud, but horizontal Senkou Span A and B; a golden cross of Tenkan-sen and Kijun-sen with horizontal lines; the market is still on SSB’s support and can’t exit to positive area.
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 NZD/JPY pair is trading within the cloud. A failed attempt to move higher will push the market to exit the Kumo, confirming a bearish scenario.
The dollar index was up late Tuesday afternoon in Asia, extending the 0.8% gain in the previous session, when COVID-19 fears and worries over the US Congress’ stimulus impasse drove a selloff across other assets.
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Gold has started a remarkable downside correction and stands on the key 23.6% retracement area after a failure to hold the 38.2% retracement area.