Type:
Bullish Bounce
Key Levels
Resistance: 0.008741
Pivot: 0.00868
Support: 0.008658
Preferred Case:
Prices are consolidating horizontally and are close to our Pivot . We see the potential for further upside from our Pivot at 0.00868 in line 61.8% Fibonacci retracement towards our 1st resistance at 0.008741 in line with 61.8% Fibonacci Extension , 127.2% Fibonacci extension and 127.2% Fibonacci expansion . Our bullish bias is further supported by RSI being on bullish momentum.
Alternative Scenario:
If prices were reverse, they can potentially dip towards our 1st support at 0.008658 which is a graphical swing low and also in line with 78.6% Fibonacci retracement .
Fundamentals:
The Japanese yen is expected to continue to ride its safe-haven status, with bias for additional gains despite its relatively long standing ultra-accommodative monetary policy put in place to aid the recovery of the country’s economy from the devastating impacts from the Delta variant of COVID-19. With commodities being at all time high, we expect investors to be on a look out for buy in opportunities on this safe-haven currency with its relative stability
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Desmond Leong runs an award-winning research firm (The Technical Analyst finalists 2018/19/20 for Best FX and Equity Research) advising banks, brokers and hedge funds. Backed by a team of CFA, CMT, CFTe accredited traders, he takes on the market daily using a combination of technical and fundamental analysis.