Slobodan Drvenica
Windsor Brokers
USD/JPY
The USDJPY stays firmly in red and extends losses in early Monday, after falling 1.3% on Friday.
Rising risk aversion after UBS’ takeover of troubled Credit Suisse bank failed to calm tensions in the market, offered fresh support to safe-haven Japanese yen.
Fresh weakness broke below pivotal Fibo support at 131.30 (61.8% retracement of 127.22/137.90) and cracked the base of daily Ichimoku cloud (130.74), focusing on psychological 130.00 support and 129.74 (Fibo 76.4%).
Daily technical studies point to strong rise in negative momentum and moving averages in full bearish setup, warning of deeper fall.
Also, last Friday’s drop and close below pivotal Fibo support at 132.56 (50% retracement of 127.22/137.90, reinforced by 55DMA) neutralized positive signal of bull-trap, after last week’s action dented this support but repeatedly failed to register a close below.
Today’s close below 131.30 Fibo support is seen as a minimum requirement to keep bears intact, while sustained break below daily cloud would further weaken near-term structure and increase downside pressure.
Former pivotal support at 132.56 (broken Fibo 50%, reinforced by daily cloud top at 132.69) reverted to strong resistance, which marks the upper breakpoint.
Res: 131.55; 132.28; 132.69; 132.99.
Sup: 130.53; 130.00; 129.74; 128.32.
-638149036756994552.png)
Interested in USD/JPY technicals? Check out the key levels
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.
Recommended Content
Editors’ Picks
EUR/USD stays near 1.0400 in thin holiday trading
EUR/USD trades with mild losses near 1.0400 on Tuesday. The expectation that the US Federal Reserve will deliver fewer rate cuts in 2025 provides some support for the US Dollar. Trading volumes are likely to remain low heading into the Christmas break.
GBP/USD struggles to find direction, holds steady near 1.2550
GBP/USD consolidates in a range at around 1.2550 on Tuesday after closing in negative territory on Monday. The US Dollar preserves its strength and makes it difficult for the pair to gain traction as trading conditions thin out on Christmas Eve.
Gold holds above $2,600, bulls non-committed on hawkish Fed outlook
Gold trades in a narrow channel above $2,600 on Tuesday, albeit lacking strong follow-through buying. Geopolitical tensions and trade war fears lend support to the safe-haven XAU/USD, while the Fed’s hawkish shift acts as a tailwind for the USD and caps the precious metal.
IRS says crypto staking should be taxed in response to lawsuit
In a filing on Monday, the US International Revenue Service stated that the rewards gotten from staking cryptocurrencies should be taxed, responding to a lawsuit from couple Joshua and Jessica Jarrett.
2025 outlook: What is next for developed economies and currencies?
As the door closes in 2024, and while the year feels like it has passed in the blink of an eye, a lot has happened. If I had to summarise it all in four words, it would be: ‘a year of surprises’.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.