Technical Analysis Post

USD/JPY Set to Edge Higher?

| 03 February, 2021 at 14:06 GMT

The dollar traded near a two-month high versus the euro and turned bullish against most major on Wednesday which leaves its safe-haven counterpart JPY as the last stand. We would expect the USD/JPY to edge higher throughout the day and we’d therefore like to buy at 104.45 (“buy limit” order below actual market price) and set our stop loss to 103.65 and TP at 105.75. 

Should we see a negative reading in today’s ADP number, the market could correct initially, so we would get our order executed as the recently falling trend line has been broken to the upside. The JPY is also showing some weaker momentum as stock markets see further demand, which given the recent r/wallstreetbets hype, could be here to stay. On the flip side, the Greenback seems to be enjoying more support and could show stronger momentum with the new US Covid- 19 aid package about to be released by the Biden administration.