FXOpen
The US Dollar (USD) rallied broadly against the Japanese Yen (JPY) yesterday after dipping below the 118.50 level and managed to close around 119.18 in the form of a bullish pin bar. The technical bias remains bullish due to a Higher High on the daily chart.
Technical Analysis
As of this writing, the pair is being traded near 119.23. A support may be seen around 119.00, the psychological number ahead of 118.32, the low of the yesterday’s bullish pin bar as demonstrated in the following chart. A break below the 118.00 handle will invalidate the current bullish formation and push the pair into deeper selling pressure, validating a dip towards the 115.00 support area.
On the upside, the pair is expected to face a hurdle near 119.40, the high of the bearish pin bar on four-hour chart ahead of 120.00, the confluence of psychological number as well as 38.2% fib level and then 120.77, the 23.6% fib level. The technical bias will remain bullish as long as the 116.76 support area remains intact.
US Growth
The US Bureau of Economic Analysis is due to release the Gross Domestic Product (GDP) report for the world’s largest economy today in the US morning session. According to the average forecast of different economists, the US economy grew at the annual pace of 2.4% by the end of fourth quarter as compared to 5.0% in the same quarter of the year before. Generally speaking, higher GDP figure is considered positive for the economy thus a better than expected actual outcome will be seen as bullish for USDJPY and vice versa.
Trade Idea
Considering the overall technical and fundamental outlook, buying the pair near the 118.80-119.00 region appears to be a good strategy in short to medium term. The trade should however be stopped out on a daily closing below the 118.00 handle.
Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Stay ahead of the market!
Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.
Latest articles
XBR/USD Chart Analysis: Price Rebounds from a Seven-Week Low
On 1 December, we outlined a descending channel on the XBR/USD chart and noted that the bearish trend was driven by fading geopolitical risks. Indeed, hopes for an end to the war in Ukraine—along with the possibility of
Silver Price Hits Historic Record Around $64
On 27 November, we suggested that silver was preparing to challenge its all-time high. Since then (marked with the orange arrow), XAG/USD has risen by roughly 18%, breaking above the psychological $60-per-ounce threshold for the first time in history.