The USD/JPY has endured a long bearish trend and its value today is hovering above critical support levels. If current value junctures prove vulnerable, the USD/JPY could be essentially opening the door for a test of the 100.000 price. Speculators should not get too greedy and look at current targeted marks of 102.630 to 102.250 as values below, which could see key short-term battles ensue if current support is penetrated.
The USD/JYP is a solid technical trading landscape for speculators. The Japanese yen has been getting stronger against the USD for a long duration, and when it broke below the 104.500 level this past October, the USD/JPY saw an additional wave of bearish momentum develop, which has seen sustained tests of support levels which have crumbled continuously. Speculators should also understand that the USD/JPY has a sincere ability to establish solid trends which can be taken advantage of with patient perspectives and trading techniques.
Global risk appetite remains steady and the Nikkei index, like its major counterparts worldwide, has enjoyed a surge of positive buying the past year. Yes, Japan does have important economic issues which challenge the Bank of Japan, and coronavirus complications remain a concern. However, the USD/JPY has provided a serious bearish trend and while reversals higher have certainly taken place, speculators should be wary of trying to stand in front of the bearish trend.
Technical traders who want to pursue selling positions of the USD/JPY are making the logical choice. Risk management needs to be practiced, but going short the Forex pair remains tantalizing and traders can use stop loss ratios near resistance to continue to test the USD/JPY for the potential of more downside price action.
Yesterday and early today, the USD/JPY brushed up against support near the 102.650 to 102.600 junctures. These low water marks should be watched carefully by speculators. Intriguingly, after hitting these fresh lower values, the USD/JPY didn’t produce a volatile spike upwards, and trading within the pair remains normal regarding volumes. This highlights that the USD/JPY is not experiencing an over-exuberant trading environment and its bearish direction looks as if it is simply pursing an accepted path which may continue near term. Selling the USD/JPY remains attractive for speculators near term and should be considered.
USD/JPY Short-Term Outlook:
- Current Resistance: 102.930
- Current Support: 102.590
- High Target: 103.070
- Low Target: 102.230
