78% Fibonacci Support In View For The USD/JPY
Safe-havens are back in style going into the weekend, at least for the USD/JPY. Rates are down 33 pips (-0.32%) on the session, suggesting that investors are snatching up yen. The performance is much better than that of the USD/CHF, which has posted a strong intraday rally. GOLD is leading the way for the havens, up almost 0.5% on the session.
On the economic news front, the Producer Price Index (Nov.) figures were released to the public earlier today. Everything came in as expected, with both PPI and Core PPI only slightly underperforming expectations. At least for now, we continue to see inflation move steadily north.
The highlight of this morning’s economic releases was the uptick in the Michigan Consumer Sentiment Index (Dec.). Figures came in at 81.4, well above the expected 76.5. Considering the onslaught of the COVID-19 second wave and COVID-19 stimulus uncertainty, any positivity in this area is an eyebrow-raiser.
For the USD/JPY, rates are on the backfoot. Let’s take a quick look at the daily technicals and see if we can spot a trade or two.
USD/JPY Slides Toward Fibonacci Support
In contrast to last Friday, the USD/JPY is down significantly. Rates are under 104.00 and creeping south.
+2020_12_11+(9_51_29+AM).png)
Here are the levels to watch going into Monday’s session:
- Resistance(1): Daily SMA, 104.21
- Support(1): 78% Retracement, 103.72
Bottom Line: If the bears continue to dominate the USD/JPY, a buying opportunity may come into play for early next week. Until elected, I’ll have buy orders in the queue from 103.76. With an initial stop loss at 103.46, this trade produces 30 pips on a standard 1:1 risk vs reward ratio.
ABOUT THE AUTHOR
See More
Sidebar rates
Related Posts
Save
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals