​USD/JPY Potential Retest of the Lower Channel Trend Line

September 17, 2018 21:07

USDJPY Technical Analysis

Source: Admiral Markets MT5 with MT5SE Add-on 17.09.2018 10:00 AM

The USD/JPY currency pair is trapped within the equidistant bullish channel. As the risk-off continues across Asian Equities today, the question has become whether the last few days of the last week was a dead cat bounce in European Equities or not, whilst the US equities remained strong. This mixed sentiment may weigh USD into range. Geopolitics is still a focus for markets and we might see plenty of catalysts this week that might re-ignite various concerns. Additionally, recent reports have indicated that the Bank of Japan (BOJ) may re-adjust their policy settings at their next meeting might weigh somehow on the JPY. If the BOJ mentions its monetary policy tightening - it might help in the USD/JPY currency pair going lower.

Technically, 111.90-112.00 is the mid-line between the Admiral Daily Pivot and Admiral Resistance so the rejection is possible. The target is the POC zone around 111.50 where the pair might bounce. However, a drop below the POC suggests a further drop in the USD/JPY towards the S3 line around 111.35. If we see a bounce from the POC zone, the next targets could be 112.00 and 112.30.

Short Pivot Lines - Daily Support and Resistance

Long Pivot Lines - Weekly Support and Resistance

POC - POC - Point Of Confluence (The zone where we expect the price to react - aka the entry zone)

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