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 Dollar supported by Cloud
Technical levels: support – 106.15; resistance – 106.70, 107.00.
- Buy — 106.30/40; SL — 106.10; TP1 — 107.00; TP2 — 107.50.
Reason: bullish Ichimoku Cloud, but there is a falling Senkou Span A; a golden cross of Tenkan-sen and Kijun-sen with narrowing channel of Tenkan-Kijun; the market had returned to the Cloud but supported by Senkou Span B.
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.
Gold is steadily plummeting for the third consecutive day. Where is the bottom? Let’s find out.
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