USDJPY: Recovering But Vulnerable Medium Term…
The USDJPY remains in a recovery mode and further upside couldn’t be ruled out, as long as the pair trades above 104.50/105.83 levels on a daily closing basis. Resistance comes at 107.85 level. A break would open 108.83 level. A halt is likely, it may turn lower from here, But above 108.83 opens 110.65 next, further upside, resistance comes in the 112.00 levels.
Medium-term outlook: Recovery from 101.17 may extend to 109.55/110.45 where strong rejection is very likely…
On the downside, immediate support comes at 105.83 level. A cut through support should weaken the recent recovery and turn the focus on the 104.50 levels. It should go up from here ( strong rebound ). But If this fails to happen, expect further weakness to 102.25 levels.
In conclusion: The USDJPY faces recovery threats above 104.50/105.83 levels.
Support: 107.22, 105.83, 104.50, 103.00, 102.25
Resistance: 108.83, 110.65, 112.00, 113.55, 115.40
- U.S Building Permits (Feb) at 12:30 GMT. (Moderate).
*The economic effects of the spread of the Coronavirus in Europe and the world, in addition to the oil war between Russia and Saudi Arabia. All of this will affect the market very strongly.