USD Lags Against Forex Safe-Havens: USD/JPY In Focus - Forex News by FX Leaders

USD Lags Against Forex Safe-Havens: USD/JPY In Focus

Posted Thursday, February 8, 2018 by
Shain Vernier • 1 min read

It has been a strong forex session for the USD. Substantial gains have been made against the Euro, Loonie, Kiwi, and Aussie. Losses against the British pound have been pared in the aftermath of a strong collection of U.S. employment metrics. The only red marks on the ledger are in the Swiss franc and Japanese yen.

Since last fall’s reelection of Shinzo Abe as Premier, the yen has been fighting a back and forth battle with the USD. However, the JPY has gained momentum in early 2018, and the USD/JPY is poised to threaten levels not seen since September of 2017.

USD/JPY Technicals

For the last three weeks, the USD/JPY has traded between topside resistance from the daily timeframe and long-term downside support. Today’s session has been dominated by sellers, moving price toward several key support levels.

usd
USD/JPY, Daily Chart

Here are several levels to watch for the remainder of the trading week:

  • Support(1): 78% Retracement Sept. Low/Nov. High, 108.94
  • Support(2): Swing Low, 108.50
  • Support(3): Psyche Level, 108.00
  • Support(4): 2017’s Low, 107.31

Overview: The coming week is going to tell us a lot about the long-term prospects of the USD/JPY. Even with talk of aggressive tightening by the U.S. FED, the yen is consistently posting gains. For the JPY to show such strength against the greenback at the current time illustrates the degree of interest in safe-havens.

The trend for the USD/JPY in 2018 is clearly bearish. In my opinion, this market will test 2017’s low of 107.31 in the coming weeks. Until then, a short-term long position from support may set up for over the weekend. If it does, it will be available for tomorrow’s session.

As always, trade smart and keep a close eye on leverage!

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies

About the author

Shain Vernier // US Analyst
Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.
Related Articles
Comments

Leave a Reply

avatar
  Subscribe  
Notify of