USDJPY Intermediary Support Is Around 104.00

25 August 2020

USDJPY seems to have resumed its rally after having carved a higher low around 105.10 mark. The currency has managed to inch higher towards 106.40 until now and should be looking to continue. Bulls are looking poised to push through 110.00 and beyond, going forward.

USDJPY probable wave counts are as follows: The rally from 101.18 through 111.75 could be Wave (A) of a higher degree. The subsequent drop towards 104.20 could be labelled as Wave (B) as the drop unfolded into 3 waves, labelled as A-B-C on the chart here.

If the above proposed wave structure holds well, USDJPY should rally and terminate above 111.75 as Wave (C) of a similar degree unfolds. Also note that prices should ideally stay above 104.20 mark, going forward.

Immediate resistance is seen towards 107.50, followed by 108.15 and 109.85, while support stays around 104.20 respectively. Bulls must be looking poised to push through 107.50 levels in the near term. Bottom line remains the 104.20 mark.

USDJPY could be unfolding a triangle at a larger degree before breaking out (not seen here). The overall trend remains bullish over the long term. In the medium term though, bulls would be targeting to print above 111.75 levels.

Traders might be inclined to hold long positions taken around 104.50/105.00, with protective stops below 104.20 and projected targets towards 110.00 and 111.75 respectively. Only a break below 104.20 would delay matters.

Prepared by
Technical Analysis Team

Disclaimer: This information has been produced by a third party, for general information purposes only, and is not indicative of future results. Abans Global takes no responsibility for its accuracy or completeness. Any opinions expressed do not reflect those of Abans Global. This information does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such. You should seek independent advice before making investment decisions. Reproduction of this information, in whole or in part, is not permitted. Please note: If you are a Professional client, you are not eligible for negative balance protection and you could lose more than your initial deposit.

Trade with
Abans Global

  • Authorised and Regulated by FCA
  • Customer Support 24/5
  • Low Spread & Commission
  • Instant Execution
  • No Dealing Desk
Interested in knowing more about our products

Simply send an e-mail to us at: support@abansglobal.co.uk
Contact us on +44(0) 203 936 9000

We will be happy to address all your queries

Our Products

Offering state of the art execution services through multiple top-tier liquidity providers. Abans Global provides you with a tailor-made solution to match the demanding requirements of your business, with the multi-assets offering, advanced trading platforms and FIX API connectivity that provides ultra-low latency.

Forex

Forex

Know More

View more
Cfd’s

Cfd’s

Know More

View more
Equities

Equities

Know More

View more
Indices

Indices

Know More

View more
Commodities

Commodities

Know More

View more

Create Demo Account

Try Demo

Create Live Account

Sign In