A higher reversal cannot mask the medium-term downtrend
A slight reversal to the upside at the start of USD / JPY trading this morning has been demonstrated, but short-term speculators should still consider the broader trend.
The yen is a popular asset during times of turbulence.
The USD / JPY is trading near 109,500 as of this writing, having climbed from a low of around 109,100 seen earlier today. The ability of the USD / JPY to break out of the lows that retested the depths seen on the 15the September 16 ande August may have satisfied some speculators who bet on bullish reversals, but the medium term trend of the Forex pair should be kept in mind.
The 11the As of August, the USD / JPY was trading near a high of 110,800 and has gradually seen its resistance levels decline over the past six weeks. It was not accomplished in an easy way and reversals have certainly been part of the trading landscape, but the USD / JPY continues to demonstrate a lack of upside push that has significantly challenged the higher levels. If the current short term resistance levels prove to be lasting near the 109.720 to 109.750 levels, this could be a signal that further bearish momentum will be displayed.
Technically the USD / JPY has produced a bearish trend which should be taken into consideration and the addition of a rather shaky short term investment sentiment adds a speculative ingredient that may intrigue traders. The ability of the USD / JPY to trend down when sentiment for risk averse trading behavior increases in Asia has been proven.
If the USD / JPY continues to float below current resistance levels, speculators may be inclined to look for more bearish activity within the Forex pair in the near term. Support ratios near the 109,500-109,450 levels should be watched closely. If these marks are suddenly put to the test and start to prove vulnerable, it could indicate that a movement towards junctions 109.30 through 109,200 could potentially ignite quickly.
The transaction value within the USD / JPY is huge and there is a lot of transparency for speculators to look at. The short term is likely to produce rather volatile results until global market conditions calm down, but the question that should be asked by speculators interested in behavioral sentiment is when peace will be restored.
While there have been no volatile moves in the USD / JPY, traders should continue to be on the lookout for the potential for sudden gyrations.. Risk management is strongly advised and the use of stop losses and take profits to secure transactions should be a priority. Selling USD / JPY on slight upside reversals that remain below current resistance levels, and looking for lower reversals can prove to be worth bets for traders.
USD / JPY Short term outlook
Current Resistance: 109,750
Current support: 109,450
High Target: 109,930
Low target: 109,150