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USD/JPY technical analysis: more downside expected below 107.30 level

By Nathan Batchelor

15:22, 22 July 2020

USD/JPY technical analysis

The US dollar appears increasingly bearish against the Japanese yen, as the pair struggles around the 107 area.

USD/JPY analysis shows that the pair has staged a bearish breakout from a large triangle pattern on the daily time frame.

USD/JPY medium-term price trend

The USD/JPY still could start to fall back towards the 106 support level, as traders continue to sell any rallies above 107.

USD/JPY technical analysis shows that the USD/JPY pair remains vulnerable to losses towards the 106 level while THE price trades below 107.30.

USD/JPY technical analysis

The daily time frame highlights that the pair has fallen under a triangle pattern, between the 107.30 and 108.40 levels.

Failure to break above 107.30 could see the USD/JPY pair slipping back towards the 106 level.

Key technical support below the 106 level is located around the 105.50 and 104.80 levels.

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USD/JPY short-term price trend

Short-term USD/JPY technical analysis highlights that the pair has a bearish bias while the price trades below the 107.50 level. 

A bearish head-and-shoulders pattern has formed across the lower time frames, with a sizable downside potential.

USD/JPY technical analysis

The neckline of the bearish head-and-shoulders pattern is located around the 106.80 support level. 

Weakness under the 106.80 level is likely to trigger technical selling towards the 106 support region, and possibly the 105.50 level.

USD/JPY technical summary

USD/JPY analysis highlights that the pair appears bearish over the short and medium-term horizon. Weakness under the 106.80 level should trigger heavy technical selling.

Markets in this article

USD/JPY
USD/JPY
144.108 USD
-3.19 -2.170%

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
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