Technical Analysis of the USD / JPY pair: The USD continues to face difficulties at the 110 level
The US dollar continued to struggle against the Japanese yen at the 110 yen level, the region that has caused many problems in the past. Ultimately, this market continues to view this level as an important bending point, and by looking at long-term charts, it is easy to see that the 110 yen level is the fair value for long-term traders. The 105 yen level was providing a lot of support in the long run, and the 115 yen level offered a lot of resistance. This explains why it is difficult to get past the 110 Yen level, although we have seen a lot of strength in the USD
By looking at this chart, we bounced back a little towards the end of the day, and therefore this indicates that the market is trying to form a kind of support in this region, but I honestly do not find the incentives that push this market up, unless of course we get a great progress of some kind "A willingness to take risks." We need to break above a new high in order to confirm this, so even if we pass the 110 yen level, this will not be enough.
If we break above the recent high, which is currently around 110.35 yen, then the market may head towards 111 yen, but I think it will be slow progress, not necessarily acceleration towards the top. In the end, even if we get some kind of risk-taking situation, the global growth situation is still weak, and the Corona virus has not disappeared yet, so I think it will be difficult to stick to the advances at this point. I think the 50-day SMA is likely to provide support, which is closer to the 109 yen level
If we break below that level, then the bullish trend line, which is located on the bottom of the ascending channel, is likely to affect. A break below that level would open the door for a move towards 105 yen, and would likely lead to a major breakout
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