USDJPY 6 APRIL 2020

6 April 2020

USDJPY ANALYSIS

BY 

Michael Brunette

Following the update on 3 April, the price of USDJPY broke through the resistance at 108.725, which could be the sign that the trend is changing to bullish. It has already retraced to the 50 Fibb level on the larger bearish movement, and the rsi is indicating an overbought currency, so the logical expectation would be for the price to retrace to the 23 or 38 or even the 50 level on the bullish trend. But that is not always the case, look for bulls to keep pushing the price up towards the 61 level and then retrace from there as new entrants will be waiting for the price to recover before entering any more long trades.

Looking back to around the 6th of March, the trend has been predominantly bullish, with the retracement reaching the 38 Fibb level where it at a significant support level and is now pusing up. It is perhaps time to focus on levels to place long entries(Buys) most likely near the 107.600 level, keeping a close eye on the RSI to be above 50 when it reaches that price. Entering into short(Sell) positions to capitalise on the retracement would be a more risky trade in my opinion, but still very viable and could see short term gains while the market adjusts to its equilibrium price.

(This information is purely speculative and we do not accept any gains or losses resulting from our analysis)