The yen weakened against its major counterparts, especially the greenback as Wall Street focused on the satisfying earning reports and ignored mixed European stock market and bearish Asian market.

Yen also weakened against the USD after one the Fed official. New York Fed President William Dudley, noted that the monetary policy adjustment will be done gradually and carefully as US economy is still facing uncertainty. Dudley is also known as a close friend of Janet Yellen, the chairwoman of the Federal Reserve.

Until 15:00 GMT, USD/JPY is still hovering around 108.82, rose as much as 0.08%.


However, based on technical analysis method we can see that USD/JPY remains in bearish bias for intraday outlook. The price has pulled back into the Fibonacci area at 108.549-108.995. The price is testing 50 MA on hourly chart as well. Hourly stochastic and CCI are overbought and all you have to do is to wait for bearish signal within the Fibonacci area as signal to go short with target at 108.273-107.826.

Be very careful if the price managed to break above the resistance at 108.995 because it will turn the intraday bias to bullish and possibly will be followed by a bullish move up to 109.313-109.718. In that case, the bearish scenario likely will fail.

2 thoughts on “USD/JPY Rose But Remains In Bearish Bias; April 18, 2016”

  1. Ryan Gandalf van Jaarsveld says:

    Thank you Eko. I was really expecting a negative reaction to the Doha meeting yesterday – I am very surprised by the Yen move and the risk on sentiment.At the time of writing price reached just short of 109 and retraced with some profit taking continuing to move sideways. Perhaps some selling will take place during the Asian session with continued weakness at London open tomorrow with a buy opportunity at tomorrow’s DPP? Due to the double bottom being in play on H4 I remain bullish on Yen pairs and will look to buy dips while holding each position with SL at breakeven in preparation for the BOJ meeting next week.

  2. Eko Trijuni says:

    You were right. The double bottom won the game.

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