USDJPY Looks Vulnerable As Bearish Pin Bar Emerges

FXOpen

Technical Bias: Bullish

Key Takeaways:

  • USDJPY leaves a classic bearish pin bar
  • Japan’s machinery orders exceed expectations
  • Rising trendline remains intact

The US Dollar (USD) extended upside movement against the Japanese Yen (JPY) on Wednesday, increasing the price of USDJPY to more than 120.40 following the release of Japan’s machinery orders data. The technical bias remains bullish due to a Higher High (HH) on the daily chart.

Technical Analysis

As of this writing, the pair is being traded around 121.40. A support may be seen near 121.00, the psychological number ahead of 120.84, the swing low of bullish pin bar on four-hour chart and then 120.03, the 38.2% fib level as demonstrated in the following chart.

USDJPY Looks Vulnerable As Bearish Pin Bar Emerges

On the upside, the pair is expected to face a hurdle near 122.00, the psychological number as well as swing high of the bearish pin bar which emerged yesterday. The bias will remain bullish as long as the lower trendline channel remains intact.

Machinery Orders

Machinery orders in Japan remained 1.9% in January as compared to 11.4% in the same month of the year before, a report revealed yesterday, up beating the average forecast of -1.0%. Generally speaking, higher machinery orders reading is considered positive for the economy thus a better than expected actual outcome spurred moderate selling pressure in the price of USDJPY.

Trade Idea

Considering the overall technical and fundamental outlook, selling the pair around the current levels appears to be a good strategy in short to medium term. The trade should however be stopped out on a daily closing above the 122.00 resistance area.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Forex Analysis

Commodities and European currencies Test Key Supports EUR/USD Analysis: The Price Today Has Set Its Minimum Since the Beginning of March Market Analysis: GBP/USD Dives While USD/CAD Gains Bullish Pace The US Currency Corrects After Recent Growth USD/JPY Price Analysis: Consolidation ahead of US News

Latest articles

Weekly Market Wrap With Gary Thomson: NIKKEI-225, USD/JPY, GBP/USD, USD/CAD, Gold
Financial Market News

Weekly Market Wrap With Gary Thomson: NIKKEI-225, USD/JPY, GBP/USD, USD/CAD, Gold

Get the latest scoop on the week's hottest headlines, all in one convenient video. Join Gary Thomson, the COO of  FXOpen UK, as he breaks down the most significant news reports and shares his expert insights.

  • NIKKEI-225 Analysis Indicates Possibility

Forex Analysis

Commodities and European currencies Test Key Supports

On the eve of the Easter holidays, the main currency pairs have slightly slowed down the development of the main trends and are consolidating near key ranges, the breakdown of which could provoke a change in the vectors of medium-term

Shares

Stock Market Analysis: NVDA Losing Leadership?

Since the start of the week, the S&P-500 Index (US500) is up about 0.58% while NVDA's share price is down about 3.8%. This is a worrying sign for Nvidia stock investors — could it be a sign

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65.68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.