USD/JPY Is At a Pre-Breakout Structure At 109.70 Level: What’s Next?
July 29, 2021|The Forex Secret –The dovish FOMC pushed the US Dollar down against other major currencies except for the Yen.
Therefore, although the EURUSD and GBPUSD moved up, USDJPY barely made a new low. In this condition, what may happen to the price? Let’s see the future price direction from the USDJPY Technical analysis.
USD/JPY Bears are Active
USDJPY tried multiple times to move above the dynamic 20 EMA and continue the bullish pressure but failed. Therefore, the price moved down where the most recent inside bar after the FOMC is a sign that bulls tried to take the price higher but failed.
In the price chart, we can see the daily chart of USDJPy where the price is just above the 109.70 support level. Here investors should wait for the price to come below the support level with a bearish daily close and any sign of correction may initiate a selling point.
On the other hand, the price is still above the 109.70 level and any rebound from this level may extend the current correction.
Is USDJPY A Sell?
Based on our findings, we will wait for a daily close below the 109.70 level to consider the upcoming price pressure as bearish. In that case, the primary price target would be 108.00 psychological support and 107.50, later on.
However, investors should remain cautious about the price volatility and follow a strong money management system when required.