The greenback extends its gain as investors are still hunting safe-haven assets after Brexit. There are lots of questions about recent situations as uncertainty remains and surely there would be more unexpected things to come.
The impact of Brexit not only positive for USD but also for other safe-haven currency such as yen. Investors sold pound and euro and trade them to yen or USD.
USD/JPY currently is moving along the Fibonacci resistance area at 101.978-103.824. On hourly chart, 50 MA is still falling but 20 MA is getting flat. Intraday bias remains bearish despite oversold stochastic and CCI. However, the momentum is low.
The pair probably will fall to 100.835-98.989 today, but since hourly stochastic and CCI are oversold, we might see a pull-back move to the Fibo’s resistance area. As alternative strategy, watch for bearish signal confirmation on a pull-back move to within the Fibo’s resistance area with 100.835 as target and 98.989 in extension.
Be careful if the price managed to break above 103.824 because it will turn the intraday bias bullish and possibly will be followed by a bullish move up to 104.967-106.813.
– Sell at 101.978-103.824
– S/L: 104.20
– T/P: 100.825 or 98.989 in extension