ICM Technical Analysis : USD/JPY 17 March 2020

ICM Technical Analysis : USDJPY – 17 March 2020

Demand for the safe-haven Japanese yen increased Monday as global equities were a sea of red across the board, despite impetus from central banks. USD/JPY nosedived through March’s opening level at 107.38, 107 and 106, with H4 action currently retesting the underside of the latter as resistance. 105 calls for attention to the downside, closely bolstered by a 50.0% retracement value at 104.86 and then a weekly support at 104.70, followed by a weekly Quasimodo support at 102.55.

Resistance on the daily timeframe at 106.80 remains on the radar, after rejecting the 200-day SMA (orange – 108.24). Support on this timeframe continues to be governed by the weekly levels highlighted above.

Areas of consideration:

For those who read Monday’s technical briefing you may recall the following piece:

The combination of the 200-day SMA and 108 holding on the H4 may send USD/JPY lower today/early week, with traders likely to embrace 107.38 and 107 on the H4 timeframe as support. A break lower, though, lands the unit within striking distance of daily support at 106.80.

Well done to any readers who managed to jump aboard shorts from the 108ish region.

Going forward, resistance at the underside of 106 is likely to entice further selling, targeting 105 and beyond. In the event the current H4 candle closes as is, a shooting star (bearish) candlestick formation, this will further encourage a move lower, with candlestick traders basing entry and risk on the back of the candlestick structure.

Disclaimer: The information contained in this material is intended for general advice only.