FXOpen
The US Dollar (USD) fell against the Japanese Yen (JPY) on Monday, dragging the price of USDJPY to less than even 124.40 ahead of some key economic events. The technical bias remains bullish due to a Higher High and Higher low in the recent wave on daily chart.
Technical Analysis
As of this writing, the pair is being traded around 124.39. A hurdle may be noted near 124.59, the 76.4% fib level ahead of 125.00, the psychological number and then 124.89, the swing high of the last major upside rally as demonstrated in the following daily chart.
On the downside, the pair is expected to find a support around 124.00, the psychological number ahead of 123.79, the 61.8% fib level and then 123.14, the 50% fib level. The technical bias will remain bullish as long as the 123.00 support area is intact.
US Housing Market Index
Today the National Association of House Builders (NAHB) is going to release the US Housing Market Index news for the month of August. The figure is expected during the early New York session. According to the average forecast of different economists, the housing market index remained 61 points in August as compared to 60 points in the month before. Generally speaking, higher index reading is considered positive for the economy and vice versa thus a better than expected actual outcome will be seen as bullish for USDJPY.
Trade Idea
Considering the overall technical and fundamental outlook, selling the pair around current levels appears to be a good strategy in short to medium term. The trade should however be stopped out on a daily closing above the 125.27 resistance area.
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
Gold Stays Flat as WTI Crude Faces Hurdles
Gold price corrected gains, traded below $4,000, and started a consolidation. Crude oil is showing bearish signs and might decline below $58.80.
Important Takeaways for Gold and WTI Crude Oil Prices Analysis Today
· Gold price started a downside
Palantir Technologies (PLTR) Shares Fall Despite Strong Earnings
Palantir Technologies (PLTR), a company specialising in big data analytics software, released a strong quarterly report this week:
→ Earnings per share: actual = $0.21, expected = $0.17
→ Revenue: actual = $1.181 billion (up 63% year-on-year), forecast = $1.09 billion
Palantir
Gold Price Surges Above $4,000
As the chart shows, XAU/USD climbed above the $4,000 mark today, a move likely driven by:
→ Weakness in the US dollar index – or a pullback from the resistance level discussed in yesterday’s DXY analysis.
→ Concerns over the