USD/JPY Weekly Analysis 25 April 2017

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CHARTING

The crucial points are:

1

Yesterday, USD/JPY opened higher than 110.430 level of resistance, but immediately retraced lower, with the news of Emanuel Macron’s victory in the First round of French Presidential elections, which strengthened the Euro and other European currencies. Consequently, causing a selling of the US Dollar. Furthermore, speculations surrounding Trump’s tax reform and tax reduction program, which has weakened further the US Dollar. Today, a massive sell–off in ‘’safe havens’’ (Gold, Japanese Yen etc) is taking place, resulting from the first opinion poll after the first round of French presidential elections, which suggests that the centrist Macron is likely to win the French presidency on 7th of May, against the far – right Marin Le Pen.

Charting outcome: Neutral

INDICATORS (Computerized T.A)

The crucial points are:

2

3

The indicators are signaling that a downtrend has occurred, which is likely to become weaker. The moving averages have added bullishness to their slopes, while the spread between the negative and the positive dynamic has tightened. The trend dynamic has fallen by -15.76%, whilst the market’s volatility has marginally risen by +1.60%. Finally, the oscillators have passed into marginally overbought territories.

Indicators outcome: Marginally bearish – Neutral     

CONCLUSION

Indicators and charting are in favor of the neutral outlook. However, the indicators suggest the marginally bearish outlook as well. Should the price breaks lower than 109.330 level of support, the next support is possible to occur at 108.331 level. On the contrary, if the price reaches higher than 110.430 level, the next resistance could be the 111.629 level.

 

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