USD/JPY Key Support Fights off Another Downward Advance
|S1: 109.10||R1: 110. 25|
|S2: 108.75||R2: 111.20|
|S3: 108.20||R3: 114.00|
The USDJPY moved lower into the support zone in the last 48 hours and re-tested the low at around the 108.50 level. There has been only a small amount of commentary around the tensions in the Asian Pacific region in the last 24 hours, and the USDJPY has regained a little upward momentum in the shorter time frames, moving above the 109.00 level.
The daily chart above still indicates that the next likely move will be long for this pair, with the support zone in the mid 108.00 region again holding strong. The 1-hour chart has shown a change of trend in the short timeframe, with a confirmed hammer candle appearing only a few hours ago, signalling a potential swing higher to around the 109.80 level.
We are yet to see the results of the important news for the USDJPY this week, with the US Unemployment Claims and Oil Inventories due tonight and tomorrow night respectively. Traders should remain vigilant of any updates on the actions out of North Korea, as these have the potential to significantly shift this pair in either direction.