USDJPY Forecast | Smaller than forecast Japanese trade deficit bearish for USDJPY | IFCM UK

Technical Analysis USDJPY : 2020-01-23

Recommendation for USD/JPY:

Buy
Strong SellSellNeutralBuyStrong Buy

> 109.62

Buy Stop

< 109.42

Stop Loss

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Senior Analytical Expert
Articles 1523
IndicatorValueSignal
Stochastic Buy
Donchian Channel Neutral
MA(200) Sell
Parabolic SAR Buy
Fractals Sell
MACD Buy

Chart Analysis

IFC Markets Tech Analysis

On 1-hour timeframe USDJPY: H1 is retracing higher toward the 200-period moving average MA(200) which is falling itself. However the stochastic indicator has formed a bullish divergence.

We believe the bullish momentum will resume after the price breaches above the fractal high at 109.62. A level above this can be used as an entry point for placing a pending order to buy. The stop loss can be placed below 109.42. After placing the order, the stop loss is to be moved to the next fractal low, following Parabolic signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop loss level without reaching the order, we recommend cancelling the order: the market has undergone internal changes which were not taken into account.

Fundamental Analysis

Japan’s trade deficit widened less than expected to 100 billion yen in December 2019. Will the USDJPY start rising?

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