USD/JPY Weekly Chart: 108.80 Presents Major Resistance

Key Highlights


  • USD/JPY started a strong increase above the 105.50 and 106.50 resistance levels.

  • A crucial bearish trend line is forming with resistance near 108.80 on the weekly chart.

  • The US Initial Jobless Claims in the week ending Feb 27, 2021, increased from 736K to 745K.

  • The US nonfarm payrolls could rise 182K in Feb 2020, up from the last 49K.


USD/JPY Technical Analysis


After forming a base above 102.50, the US Dollar started a strong increase against the Japanese Yen. USD/JPY broke the 105.00 resistance to moving into a positive zone.



Looking at the weekly chart, the pair gained pace above the 105.50 and 106.50 resistance levels. There was a clear break above the 50% Fib retracement level of the downward move from the 109.84 high to 102.59 low.

It is now trading above the 107.50 resistance zone and the 100-week simple moving average (red). The first major resistance is near the 108.20 level. There is also a crucial bearish trend line forming with resistance near 108.80 on the same chart.

The 200-week simple moving average (green) is also near the trend line. A clear break above 108.20 and 108.80 could be difficult in the near term.

On the downside, immediate support is near 106.80. The main support is near the 106.20 level, below which there is a risk of a drop towards the 105.50 level.

Overall, USD/JPY broke many hurdles on the weekly chart, but it is still facing a strong resistance near 108.80. Looking at EUR/USD, the pair traded below the 1.2000 support, and GBP/USD is still well below 1.4000.

Economic Releases

  • US nonfarm payrolls Feb 2020 – Forecast 182K, versus 49K previous.

  • US Unemployment Rate Feb 2020 – Forecast 6.3%, versus 6.3% previous.


0 views0 comments

Credit 

Caution:

Trading involves the possibility of financial loss. Only trade with money that you are prepared to lose, you must recognize that for factors outside your control you may lose all of the money in your trading account. Many forex brokers also hold you liable for losses that exceed your trading capital. So you may stand to lose more money than is in your account. Smart Analysis Pvt takes not responsibility for loss incurred as a result of our trading signals. By signing up as a member you acknowledge that we are not providing financial advice and that you are making a the decision to copy our trades on your own account. We have no knowledge on the level of money you are trading with or the level of risk you are taking with each trade. You must make your own financial decisions, we take no responsibility for money made or lost as a result of our signals or advice on forex related products on this website.

PayPal

Credit  & Debit Card

  • Black Facebook Icon
  • Black Instagram Icon
  • Black YouTube Icon

© 2023 by Personal Life Coach. Proudly created with Wix.com