Good afternoon Forex Kings,
Fears of further selling pressure during tonights US session is creeping into the market. JPY is strengthening across the board as well as pressure being applied to commodity related currencies.
Stocks and Global indices are leaning to the downside due to spill over worries from yesterdays oil panic. This would have resulted in margin calls, credit risks and potentially company defaults. Earning seasons has barely begun in the US. Over the next couple of weeks we will see Q1 results of the corona-virus pandemic. Keep in mind Q2 is expected to be much worse.
USDJPY – Technical Analysis
Previously we made a nice profit from the breakout back towards the end of March. We are now seeing a breakout of a potential pennant formation. A key support zone is around the 106.95 level.
Major resistance can be found at 107.96 therefore any stops would need to be kept above this level.
Trade setup: SELL USDJPY (MARKET ORDER – current price is 107.43). Stop loss set at 108.23 and take profit target 105.63.
Stop loss: 80 PIPS
Take profit: 180 PIPS