USDJPY – Panic Selling or New Bearish Trend?

By Unknown

Sabtu, 07 Mei 2016

USDJPY – Panic Selling or New Bearish Trend?

The dollar fell sharply against the yen at the end of last week, the first trading day of this, the latter benefiting from the conduct of currency trading and its safe haven status perceived

the sell-off in the pair caused a break below the line upward trend -. January 16 high - and came close to 2015 low before rebounding.

the pair is about to test whether the sell-off was the start of a broader sell-off in the pair or just a one-off movement triggered by market panic.

The pair is currently testing the 50% retracement of the move from 12 August to highs Monday's low coincides with a front of support and resistance. If this sell-off is actually part of a broader sell-off would represent a logical level for the pair to reverse back to the downside.

However, the rally in recent days does not seem to be losing momentum at this stage despite being held here at the moment.

in mind, we could see a further rise in short-term pair, that would not even say that the sell-off peaked Monday

the real test comes around 1.2180 where the rising trend line -. mentioned above - overlaps a prior level of support and resistance and the 61.8% retracement of the aforementioned swing up and down

failed to break that level would actually act as a confirmation of the original break - . a bearish signal - and offer more downward pressures remain. We have not seen a significant correction in the pair for some time, it would not be surprising to see one now, even if the long-term outlook remains bullish.

Alternatively a break and daily close above that resistance area suggests the sell-off was just panic selling and the bullish bias remains in tact.

The above and other tools can be found in OANDA Forex Labs.

[ad_2]
Read More : USDJPY – Panic Selling or New Bearish Trend?

Share :

Facebook Twitter Google+