Forex Trading: Technical Analysis (USD/JPY) – October 11, 2019

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Written on Oct 11, 2019

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The USDJPY inched higher against the Japanese Yen (JPY) on Friday, increasing the price to more than 107.00. The price increase occurs amid recent major economic release concerning the ISM Non-Manufacturing index. The technical bias might remain bearish since the price printed a lower low in the last downside move.

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Technical Analysis USD/JPY

As of this writing, the pair is being traded around 107.96, the confluence of a trend line and major horizontal resistance level ahead of a trend line resistance which is expected to hit the price around 108.29, and then comes 108.45, the major horizontal resistance which is likely to restrict the price below the said level as shown in the graph below.

USDJPY

Coming towards the downside, support may be seen around 107.55, the major horizontal support. Another support level stands next around 106.91, the trend line support and then 105.91, the 23.6% Fib level support as shown in the graph above. The technical bias shall remain bearish as long as 108.29, the confluence of two resistance levels as mentioned above stays intact.

ISM Non-Manufacturing Price Index

The Institute for Supply Management (ISM) has recently released stats concerning ISM Non- Manufacturing price index showing business conditions across the United States, especially in the non-manufacturing sector. However, it has little impact on the country’s GDP as compared to Manufacturing Price Index. Generally, a reading above 50 is considered as a bullish market for the US Dollar whereas a reading below 50 suggests a bearish trend for the US Dollar.

Conclusion

Considering the price movement over the past few days, buying the pair around current levels may be a good idea in medium to short term. On the other hand, should you wish to take a long position, it might work as well. It is to be noted that relying solely on news calendar might not be sufficient for effective trading. You also need to go for a reliable broker offering competitive spreads and reasonable leverages.