USDJPY trades to its lowest level since July 31

Technical Analysis

Author: Greg Michalowski | usdjpy

Slide continues for the USDJPY

The USDJPY has moved lower after the weaker than expected retail sales. The pair is down for the 3rd consecutive day this week. The slide as trended down 130 pips. That comes after the non-trending 59 pip trading range for all of last week. Recall that range was the 2nd lowest calendar trading range in 2020 (surpassed by a 57 pip trading range earlier in the year).  

Slide continues for the USDJPY

Technically the price has moved below the swing area between 105.097 and 105.293 and the August low of 105.097  (see daily chart above).  That area is now risk for shorts from the daily chart. 

The pair now trades at the lowest level since July 31, and opens up the door for the next target at 104.438 on that chart. That is the swing low going back to August 26, 2019. The low price for 2020 came on July 31 at 104.18. 

Drilling down to the 4 hour chart below, the move below the swing area between 105.097 and 105.29 is evident and is the risk area for shorts now.  On the downside the 104.771 is the next target. That was a swing low going back to July 29. 

The trade lower continues for the USDJPY this week.  
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