USDJPY Resistance Intact At 109.85 Handle

22 July 2020

USDJPY has dropped to interim support at 106.70/80 levels as the US Dollar reversed across the board yesterday. The currency trades around 106.84 levels for now and bulls might be preparing to rally towards 108.00/30 at least, before hitting resistance.

USDJPY potential wave counts are as follows: The currency had dropped from 112.22 highs through 101.18 lows during Feb-March 2020. It was an impulse wave labelled as Wave (1) of a larger degree (not seen on the 4H chart presented here).

The subsequent rally was corrective, and managed to terminate at 111.75, which has been labelled as potential Wave (2). Since then, a larger degree Wave (3) might be underway, and is expected to terminate below 101.18, going forward.

Going further, the probable lower degree wave counts presented are as follows: The drop between 111.75 through 106.00 could be labelled as Wave 1. The rally thereafter reached up to fibonacci 0.618 retracement around 109.85, which is potential Wave 2.

If the above counts hold well, USDJPY should remain below 109.85 and continue lower towards 101.18 and further. If we look at the price action since 109.85 interim resistance, the currency has managed to drop to 106.00 and drifted sideways since then.

The recent boundary in focus is between 109.85 and 106.00 respectively. Also, the fibonacci 0.618 retracement is seen around 108.00/30 levels. Traders might remain poised to initiate fresh short positions around 108.00/30, with stops above 109.85 respectively.

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