We last wrote about the USDJPY in June (https://fxsits.com/usdjpy-price-action/). Looking at the pair, we noticed that the USDJPY had found Resistance on its bullish movement which was temporal. This resistance was set at the level 107.049 .Since then we’ve seen the USDJPY price plummets and follow its long term bearish movement.
Looking at the H4 chart. We see that price finds resistance at the level 107.049 and now moves towards the support level 105.295 .If price does find support at this level and holds, we could see the price retrace bullishly to level 107.049 .But, if price breaks past level 105.295 then this will expose level 104.196 .Thus exposing the pair to a long term bearish movement. Look at the H4 and Daily time frame for reference chart analysis and understanding.
The pair is influenced by factors such as the covid-19. The dollar is weaker than the Japanese Yen due to the health issues its economy faces during this pandemic. At this moment the Japanese economy has been proven to be better. Because their covid cases are properly contained.It is for this reason that the USDJPY price plummets to lows. Subscribe to our Smart plan for entries and exits.
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