USD/JPY Forex Technical Analysis – In Window of Time for Closing Price Reversal Top
The Dollar/Yen edged higher on Friday, boosted by solid demand for higher-yielding assets. The catalysts behind the rally were the hope that the U.S.-China trade deal would lead to stronger global economic growth, and better-than-expected U.S. economic data.
In the U.S. on Friday, the major stock indexes rose to new highs as the latest data – surge in housing starts to the highest level since 2006 – drove stocks on Wall Street to records and investors away from risk-adverse assets like the Japanese Yen.
On Friday, the USD/JPY settled at 110.170, up 0.001 or +0.00%.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. The next upside target is the May 22, 2019 main top at 110.677. A trade through 107.651 will change the main trend to down. This is highly unlikely, but investor should start watching for a closing price reversal top due to the prolonged move up in terms of price and time.
The minor trend is also up. A trade through 109.790 will change the minor trend to down. This will shift momentum to the downside.
The main range is 112.405 to 106.463. Its retracement zone at 109.371 to 108.434 is support. This zone is controlling the near-term direction of the Forex pair. Holding above this zone is helping to generate the upside bias.
Daily Swing Chart Technical Forecast
Monday will be the eighth session up from the last main bottom at 107.651. This puts the USD/JPY in the window of time for a closing price reversal top. This chart pattern won’t change the main trend to down, but it could trigger the start of a 2 to 3 day correction.
The first upside target is the May 21, 2019 main top at 110.677.
The nearest downside target is the Fibonacci level at 109.371. Since the main trend is up, buyers are likely to come in on a test of this level.
This article was originally posted on FX Empire
