USDJPY Resistance Is Intact Around 108.30/40

08 July 2020

USDCHF seems to have tested its earlier swing lows (support at 0.9375) on July 06, 2020; by dropping to 0.9384. The currency pair has remained shy by a few pips and might have carved a lower degree wave ii at 0.9384. Ideally, USDCHF should be looking to rally towards 0.9800 and further.

Let us have a look at the larger degree wave counts. The drop from 112.22 through 101.18 was in 5 waves, hence an impulse. The label is not seen on the chart displayed but it could be Wave (1). An impulse is usually followed by a corrective wave.

The rally between 101.18 and 111.75 was in 3 waves, hence corrective. It has been labelled as Wave (2) of the same degree. If the above counts hold well, USDJPY should ideally stay below 111.75 mark and continue drifting lower towards 101.18 and further.

Looking into the lower degree counts since 111.75 here. The drop between 111.75 and 106.00 can be sub-divided into 5 waves. Hence it has been labelled as Wave 1 here. The subsequent rally has been corrective and managed to reach the fibonacci 0.618 retracement of Wave 1, around 109.85.

This has been labelled as Wave 2 here. If the above short term counts hold well, USDJPY should stay below 109.85, and continue drifting lower towards 101.18. Intermediary resistance is seen around 109.85 levels and USDJPY must stay below that mark to keep the bearish structure intact.

The recent boundary that is being worked upon is between 109.85 and 106.00 levels. The currency has managed to pull back through 108.00 levels until now. Probability remains for a push towards 108.30, which is fibonacci 0.618 retracement, before reversing lower again.

Overall, USDJPY remains sell on rallies until prices stay below 109.85 levels going forward.

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