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05.07.202217:43 Forex Analysis & Reviews: USD/JPY: long or short?

The USD/JPY pair is trading in the red at 135.81 on the H1 at the time of writing. In the short term is trapped between critical levels. It remains to see if this will be a buy or a sell, we need strong confirmation.

The currency pair seems overbought even if the Dollar Index reached fresh new highs. USD/JPY retreated as the Japanese Yen Futures rebounded. Fundamentally, the Japanese Average Cash Earnings rose by 1.0% versus 1.5% expected.

On the other hand, the US Factory Orders surged by 1.6% versus the 0.5% growth forecasted. Tomorrow, the FOMC Meeting Minutes and JOLTS Job Openings are seen as high-impact events and could really shake the markets.

USD/JPY At Crossroads!

Exchange Rates 05.07.2022 analysis

As you can see on the H1 chart, the USD/JPY pair failed to stabilize above the upper median line (uml) which represented a dynamic resistance. Technically, the rate signaled exhausted buyers after failing to make a new higher high.

Now, it challenges the 135.59 static support. This is seen as a critical downside obstacle. A new lower low could activate more declines. Only staying above this level and above the upper median line (uml) followed by a new higher high could activate further growth.

USD/JPY Outlook!

Dropping and closing below 135.59 could invalidate further growth and could bring a new selling opportunity with a first downside target at 134.74.

*Analisis pasar yang diposting disini dimaksudkan untuk meningkatkan pengetahuan Anda namun tidak untuk memberi instruksi trading.

Ralph Shedler,
Analytical expert of InstaSpot
© 2007-2024
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