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 went higher
Technical levels: support – 114.00; resistance – 114.50, 115.00.
- Buy — 114.00/10; SL — 113.80; TP1 — 114.50; TP2 — 115.00.
Reason: expanding 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 on the new highs and after short correction may start growing again.
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.
Bank of England Governor Andrew Bailey delivered a speech today. Let’s discuss what it means for a trader.
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.