Home Forex Technical Analysis USD/JPY Forex Technical Analysis – Options Market Foresees Increasing Volatility Risks – Yahoo News

USD/JPY Forex Technical Analysis – Options Market Foresees Increasing Volatility Risks – Yahoo News

4 min read

The Dollar/Yen lost ground on Friday as concerns about a surge in coronavirus infections in the United States and elsewhere supported the safe-haven Japanese Yen.

Investors were reacting to the news that more than 60,000 new COVID-19 cases were reported across the United States on Thursday, the largest single-day tally by any country in the global pandemic so far, discouraging some American consumers from returning to public spaces.

On Friday, the USD/JPY settled at 106.92, down 0.29 or -0.27%.

The dollar also weakened after U.S. producer prices unexpectedly fell 0.2% in June, following a 0.4% rebound in May, as the economy battles depressed demand amid the COVID-19 pandemic.


Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 107.790 will change the main trend to up. The next downside target is the June 23 main bottom at 106.074.

The USD/JPY is down seven sessions from its July 1 main top at 108.163, which puts it inside the window of time for a closing price reversal bottom.

The short-term range is 106.074 to 108.163. The USD/JPY settled inside its retracement zone at 107.119 to 106.872 on Friday, which suggests it can move in either direction on Monday.

The USD/JPY also closed inside the longer-term retracement zone at 106.706 to 108.008 after briefly piercing the bottom of this range on Friday.

Short-Term Outlook

The Dollar/Yen finally broke out of its narrow trading range last week despite the recent two-sided shifts in investor sentiment.

According to Monex, the one-month implied and historical volatility closed at a record low, indicating that the options markets are signaling investor concerns about a future outbreak in volatility.

Our daily chart indicates that 106.706 is a potential trigger point for an acceleration to the downside with 106.074 to 105.987 the next likely downside targets.

For a look at all of today’s economic events, check out our  economic calendar.

This article was originally posted on FX Empire


Let’s block ads! (Why?)

Source link

Comments are closed.

Check Also

Explained: Why are forex reserves shooting up when Indian economy is hit? – The Indian Express

Written by George Mathew , Sandeep Singh , Edited by Explained Desk | Mumbai, New Delhi | …