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Currency
by FXOpen on May 15th, 2019

USD/JPY outlook: the pair broke down of its Asian session consolidation phase

The sudden drop in US equity futures and European stocks put some downward pressure on the USD/JPY pair, which ultimately broke the consolidation phase of the Asian session.

Nevertheless, the Japanese Yen is still supported by concerns about a further escalation of the trade war, with improved sentiment on comments on Tuesday from US President Trump that trade negotiations with China did not stop, while they show limited positive influence. The US president of the tweeted:

“When the time is right we will make a deal with China. My respect and friendship with President Xi is unlimited but, as I have told him many times before, this must be a great deal for the United States or it just doesn’t make any sense.”

USD/JPY technical analysis

The US Dollar declined towards the 109.00 support area and recently recovered against the Japanese Yen. The USD/JPY pair traded above the 109.20 and 109.40 resistance levels.

USDJPY-Chart

The pair even broke the 109.50 resistance and the 50 hourly simple moving average. However, the bulls struggled to clear the 109.80 resistance and the pair is currently forming a major breakout pattern on the hourly chart.

On the upside, a break above the 109.75 and 109.80 resistance levels might open the doors for more gains. The next key resistances are near 110.00 and 110.15.

On the other hand, if there is a downside break below the 109.54 support and the 50 hourly SMA, then the pair could trade below the 109.40 level and the 50% Fib retracement level of the upward move from the 109.01 low to 109.77 high. The next key supports are near 109.20 and 109.08.

By FXOpen

FXOpen is a Forex and Cryptocurrency broker founded in 2005 by a group of traders. With over 10 years of experience, the company has established itself as a major Forex broker that continues to expand rapidly across the globe. FXOpen offers the MT4 and MT5 Forex trading platform with a wide range of trading instruments including 100+ FX, CFDs, Indices and Cryptocurrency markets. FXOpen also provides its own PAMM technology allowing clients to benefit from the strategies of professional traders with a proven track record of successful trading. The FXOpen Group also includes the ASIC regulated FXOpen AU in Perth Australia and the London-based FXOpen UK that is regulated by the FCA.

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