Tuesday, April 9, 2019

USD/JPY - 09 April 2019


Fundamental Highlights

The Dollar/Yen pulled back and closed down on the day as the weak US factory data brought up the recessionary fears once again. Equities closed mixed on the day, further signs of fear and uncertainty in the marketplace, weighing down the US Dollar. Meanwhile, just as the US looks to seal the deal with China, a new wave of risk appears from brewing trade tensions between Washington and the EU as the US looks to impose €11 Billion tariffs on EU products. As long as uncertainty is the main sentiment in the market, the gains on the US Dollar will be limited and the Yen bulls will eventually take back control.

Technical Analysis

The USD/JPY attempted to bounce from the 111.40 (S1) but failed to do so as the Dollar bears were in control throughout the session. Currently, price is trading between 111.40(S1) and 111.25 (S2), key support area, just above the 50 and the 200-day moving averages. The bulls need to protect this level with everything they have got to stay in control and possibly push the price higher towards 111.75 (R1). Failing to do so, the Dollar bears will take back control and target 111.10 (S3).

Support: 111.40 / 111.25 / 111.10
Resistance: 111.75 / 111.9

Chart (H4)