Technical Analyst, Saxo Bank Group
USDJPY was hit by heavy selling just before reaching the 0.618 retracement of the end-April sell-off at 157.05. A correction has taken the pair down to the 0.618 of the rebound that followed at 153.74.
The strength indicator RSI is still showing positive sentiment with no divergence, indicating USDJPY is likely to resume its bullish trend with upside potential to 158.46. If USDJPY drops below this morning's lows at 153.60, it could fall to the 0.786 retracement at 152.91. The 55 daily moving average is rising just below and is adding to the support.
If USDJPY closes below 151.85, the entire bullish trend has reversed.
EURJPY, after breaking above the 0.618 retracement, was hit by heavy selling at 169.40, which seems to be strong resistance. EURJPY has found support at the 0.382 retracement at 167.35 and could very well resume its uptrend.
RSI is still showing positive sentiment with no divergence, supporting higher EURJPY levels than 169.40.
A break below 167.35 is likely to fuel another sell-off down to the 0.618 retracement
Quarterly Outlook
Chief Investment Strategist
Quarterly Outlook
Head of Fixed Income Strategy
Quarterly Outlook
Chief Investment Strategist
Quarterly Outlook
Head of FX Strategy
Quarterly Outlook
Head of Commodity Strategy
Quarterly Outlook
Head of FX Strategy
Quarterly Outlook
Chief Investment Strategist
Quarterly Outlook
Chief Investment Strategist
Quarterly Outlook
Head of Fixed Income Strategy
Quarterly Outlook
Head of Commodity Strategy
Disclaimer
The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website. This content is not intended to and does not change or expand on the execution-only service. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.
Please read our disclaimers:
- Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
- Full disclaimer (https://www.home.saxo/en-gb/legal/disclaimer/saxo-disclaimer)