$USDJPY Trading Tip - 24/Jan


Yen has gained since the new year after a steep rise post the US elections. A closer look at daily chart for $USDJPY currency pair and applying Fibonacci indicator starting Nov (8/11/16) lows to Dec highs (14/12/16) and studying the January fall indicates a further move south for the pair. The pair is currently at 112.619 nearing 112.07 Fib 38.20% retracement level. A breakdown from this level will take $USDJPY to 109.98 that matches with Fib 50% retracement level.

On the flip-side, a reversal will see some resistance at 115.692 (18 Jan high) and further at the yearly top at 118.738

The Dollar's ($DXY) activity level remains impressively high. Breaks and trends easier to develop in higher activity. The US Dollar has been a main driver for major currencies with elections and newer policy discussion alongside central bank interest rate moves triggering. Close parallels in $USDJPY daily and $DXY charts worth keeping an eye on in tandem (as for other Major pairs).

The dollar has strengthened more than 7 percent against the yen and 2.6 percent against the euro since the Nov. 8 election.

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