Home / Forex & Currency Exchange News / Daily Market Report – USD/JPY Further Drop Still In Cards September 04, 2017

Daily Market Report – USD/JPY Further Drop Still In Cards September 04, 2017

By Mexgroup.com

USD/JPY Another Leg Lower Favored

USD/JPY opened with a gap down and seems like that the sellers are very strong on the short term. Price hovers right above a very strong static support, only a valid breakdown will confirm a larger drop in the upcoming period.

The Yen increased significantly today as the Nikkei stock index has plunged. JP225 opened with a gap down today, signaling that the bears have taken full control. The index failed once again to stabilize above the 19700 static resistance, this situation could bring a broader drop in the upcoming period.

Technically, the Nikkei was expected to drop towards the 18936 level on the short term, this scenario is still on the table as long as is trading below the 19700 resistance.

The Yen received support also from the Monetary Base indicator, which was reported at 16.3%, higher versus the 15.6% estimate. You should know that the United States banks will be closed today in observance of the Labor Day.

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USD/JPY continues to move in range on the Daily chart, but looks too overbought to resume the minor rebound. Has found strong resistance right above the warning line (wl1) of the ascending pitchfork. A valid breakdown below the 50% retracement level will open the door for a significant drop.

The downside targets are at the 61.8% retracement level, at the long term 38.2% retracement level, could be attracted also by the warning line (WL2).

GBP/JPY Attracted By A Confluence Area  

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Price goes down after the false breakout above the 38.2% retracement level and should reach the 23.6% retracement level and the first warning line (WL1) of the ascending pitchfork. Could be attracted by the confluence area formed at the intersection between the WL1 with the upper median line (uml) of the descending pitchfork.

Brent Oil Trading In The Red

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Price retested the 53.03 static resistance and failed once again to close above it. Is trading in the red and seems poised to drop towards fresh new lows in the upcoming period. Is moving sideways on the short term, so remains to see if we’ll have a valid breakdown from the minor ascending channel. Could move in range till will reach the WL1, the next major downside target will be at the 50% retracement level.

By Olimpiu Tuns

Market Analyst

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About Louie Lewis

Louie Lewis
Successful forex trading starts with you first. Then comes the actual strategies and techniques. I have been involved with forex and forex trading for a few years now. It is a wonderful way to build wealth. The learning never stops and I want to help others along their journey into this wonderful market of opportunity.

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