The USDJPY pair has been, since the 20th of January 2016, oscillating within a stable formation between the range of 115.95 and 117.36 respectively.
Will the bears take control over the price or do the buyers have something else in mind?
Today’s major pivot point area is the 117.07 level where both parties will take their chances to shift the price in their favour.
Probable Scenario
The latest stabilization of the pair below the 117.07 level is a good indication that the sellers may exert greater pressures to force the price once again to the downside.
The Stochastic oscillator has also confirmed that the price could aggressively drop as the pair has already approached overbought levels at the 80 zone.
In the scenario where the pair decelerates, the price could fall to 116.52 Fibonacci 23.6%, and 115.95 Fibonacci 0.0%.
Alternative Scenario
Alternatively, in the event where the sellers are not able to hold the price below the 117.07 area and the buyers place greater pressures, the pair could rise to 118.26, provided that initially there was a successful break above the 117.36 level.
Today’s Major Announcements
- There are no any major announcements that could strongly impact the Japanese yen
- The Initial Jobless Claims (Jan 15), the Philadelphia Fed Manufacturing Survey (Jan), and the EIA Crude Oil Stocks change (Jan 15) announcements are expected to have a medium impact on the U.S. dollar
Synopsis
- Probable trend (Bearish):117.07
- Bearish take profit targets:116.52, 115.95
- Stop loss target:117.36
- Alternative trend (Bullish): 117.36
- Bullish take profit target:118.26