The Dollar/Yen is trading lower late in the session on Friday after a survey of purchasing managers showed U.S. business activity in the manufacturing and services sectors stalled in February as companies have grown increasingly concerned about the coronavirus. The Forex pair is up about 2% this week amid worries about the health of the Japanese economy. The yen typically rises during geopolitical or financial stress as Japan is the world’s biggest creditor nation.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="At 16:47 GMT, the USD/JPY is trading 111.734, down 0.373 or -0.33%.” data-reactid=”12″>At 16:47 GMT, the USD/JPY is trading 111.734, down 0.373 or -0.33%.
Daily Technical Analysis
The main trend is up according to the daily swing chart. A trade through 112.226 will signal a resumption of the uptrend. The main trend will change to down on a move through 108.313 so the trend is safe for now.
The minor trend is also up. It changes to down on a move through 109.619 and 109.534. This will shift momentum to the downside.
The short-term range is 108.313 to 112.226. Its retracement zone at 110.270 to 109.808 is the nearest potential support zone.
Daily Technical Forecast
Based on the early price action and the current price at 111.734, the direction of the USD/JPY the rest of the session on Friday is likely to be determined by trader reaction to the long-term angle at 111.580. This angle was tested earlier today.
A sustained move over 111.580 will indicate the presence of buyers. The first upside target is an uptrending Gann angle at 112.063.
Overtaking 112.063 will put the USD/JPY in a strong position with the nearest targets 112.226 and the April 24, 2019 main top at 112.405.
Crossing to the strong side of an uptrending Gann angle at 112.397 will put the USD/JPY in an extremely strong position.
A sustained move under 111.580 could trigger an acceleration to the downside with the first target coming in at 110.751. This is followed by a potential support cluster at 110.270 to 110.188.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="This article was originally posted on FX Empire” data-reactid=”36″>This article was originally posted on FX Empire
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