{"id":1462,"date":"2020-12-21T09:25:23","date_gmt":"2020-12-21T12:25:23","guid":{"rendered":"https:\/\/youtrading.com\/en\/?p=1462"},"modified":"2020-12-21T09:33:34","modified_gmt":"2020-12-21T12:33:34","slug":"usd-jpy-technical-analysis-us-dollar-driven","status":"publish","type":"post","link":"https:\/\/youtrading.com\/en\/usd-jpy-technical-analysis-us-dollar-driven\/","title":{"rendered":"USD\/JPY Technical Analysis- US Dollar driven"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"1462\" class=\"elementor elementor-1462\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<div class=\"elementor-inner\">\n\t\t\t\t<div class=\"elementor-section-wrap\">\n\t\t\t\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-f279a04 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"f279a04\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-7b00436\" data-id=\"7b00436\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-9f53162 elementor-widget elementor-widget-text-editor\" data-id=\"9f53162\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\">\n\t\t\t\t<p style=\"margin-top: 0cm; background: white;\"><span style=\"font-size: 10.5pt; font-family: 'Helvetica',sans-serif; color: #333333;\">The <a href=\"http:\/\/bit.ly\/2OJjKKR\" target=\"_blank\" rel=\"noopener\">USDJPY<\/a> pair has been on a gradual downtrend since March this year, with the pair slumping to a multi-month low, around the 102.90 level, last week. Without a doubt <a href=\"https:\/\/bit.ly\/3ra7ySw\" target=\"_blank\" rel=\"noopener\">U.S. dollar<\/a> weakness has been the primary driver of the decline in the USDJPY, as the Federal Reserve\u2019s Q4 programme caused traders to turn bearish towards the pair.<\/span><\/p><p style=\"margin-top: 0cm; background: white;\"><span style=\"font-size: 10.5pt; font-family: 'Helvetica',sans-serif; color: #333333;\">The sudden 1,000 point rally in March from 101.17 to 111.70 reminded traders just how volatile the USDJPY pair can be, and that gains in the stock market can translate into a sudden rebound in bullish sentiment towards this risk-sensitive pair.<\/span><\/p><p style=\"margin-top: 0cm; background: white;\"><span style=\"font-size: 10.5pt; font-family: 'Helvetica',sans-serif; color: #333333;\">However, as we have seen recently the stock market is no longer the primary driver of sentiment towards the USDJPY, and the ongoing weakness in the U.S.dollar index has caused traders to sell every meaningful bounce in the USD\/JPY pair since late-March.<\/span><\/p><p style=\"margin-top: 0cm; background: white;\"><span style=\"font-size: 10.5pt; font-family: 'Helvetica',sans-serif; color: #333333;\">With the USDJPY now approaching the current 2020 trading low we are likely to see a decisive move one-way or another, with the pair either staging a powerful rebound or a drop into a much lower trading range between the 98.00 and 103.00 levels.<\/span><\/p><p style=\"margin-top: 0cm; background: white;\"><span style=\"font-size: 10.5pt; font-family: 'Helvetica',sans-serif; color: #333333;\">As previously stated, the next major move is likely to be U.S. dollar driven, and we should expect the USD\/JPY pair to follow this theme into 2021. This week could be a pivotal moment for the USD\/JPY, given the current fundamental factors influencing the down move in the greenback, and a return to risk-off sentiment.<\/span><\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-b60c118 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"b60c118\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-a3f6ebf\" data-id=\"a3f6ebf\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-f61ca5c elementor-widget elementor-widget-text-editor\" data-id=\"f61ca5c\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\">\n\t\t\t\t<p><strong>USDJPY Short-term Technical Analysis<\/strong><\/p><p>The four-hour time frame clearly shows that a downside breakout from a huge triangle pattern is underway. The breakout remains valid while the price trades below the 105.00 resistance level.<\/p><p>This is not an insignificant technical event, and the break is alluding to the fact that the USD\/JPY pair could be preparing for an 800 point slump in the short-term while the price trades beneath the 105.00 handle.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-1c7f57c elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"1c7f57c\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-ada431d\" data-id=\"ada431d\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-9711ee4 elementor-widget elementor-widget-image\" data-id=\"9711ee4\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-image\">\n\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"624\" height=\"305\" src=\"https:\/\/youtrading.com\/en\/wp-content\/uploads\/2020\/12\/USDJPY-H4.png\" class=\"attachment-large size-large wp-image-1465\" alt=\"\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-f739853 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"f739853\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-83c507a\" data-id=\"83c507a\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-7678080 elementor-widget elementor-widget-text-editor\" data-id=\"7678080\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\">\n\t\t\t\t<p>Source by ActivTrader.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-8677f2c elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"8677f2c\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-3264843\" data-id=\"3264843\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-47b28fe elementor-widget elementor-widget-text-editor\" data-id=\"47b28fe\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\">\n\t\t\t\t<p>It must be said that the USDJPY is incredibly technical, and the pair has seen various technical test and retests of the 105.00 and 104.50 resistance zone. If bears are satisfied that we are done with this price zone, then buckle up, because the USDJPY pair could be preparing to perform a major drop as the mentioned triangle pattern unfolds to the downside.<\/p><p>At this stage, the only saving grace would be a sudden reversal, and hold above the 105.00 level. This would likely cause some bear capitulation, and we could probably see a test towards the 105.70 and 106.30 resistance zones.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-f383cce elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"f383cce\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-a68ef5d\" data-id=\"a68ef5d\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-23f1fee elementor-widget elementor-widget-text-editor\" data-id=\"23f1fee\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\">\n\t\t\t\t<p><strong>USDJPY Medium-term Technical Analysis<\/strong><\/p><p>The daily time frame is incredibly interesting at the moment, as it shows the emergence of a bullish reversal pattern, which if triggered could propel the USDJPY pair significantly higher. The pattern in question is a falling wedge, which is one of the more reliable bullish reversal patterns.<\/p><p>According to technical analysis a meaningful bottom could already be in, at 102.90, although extended support from the falling wedge can also be found around the 102.40 region. These are the current spots where the USDJPY needs to reverse from, or bears are more than likely going to take the pair towards the 100.00 level.<\/p><p>In order for a bullish breakout from the falling wegde pattern to take place bulls need to rally the USDJPY pair above the 104.50 level. This is a key former swing area, and a spot that the pair had difficulty surpassing earlier this month.<\/p><p>In short, the daily time frame is showing that the USDJPY pair has a last ditch attempt to bounce from the 102.00 handle. Watch out for a big reaction in this pair once the 104.50 to 102.40 price range is broken.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-5e87f62 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"5e87f62\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-36bae3d\" data-id=\"36bae3d\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-4b8d604 elementor-widget elementor-widget-image\" data-id=\"4b8d604\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-image\">\n\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"624\" height=\"243\" src=\"https:\/\/youtrading.com\/en\/wp-content\/uploads\/2020\/12\/USDJPY-2.png\" class=\"attachment-large size-large wp-image-1466\" alt=\"\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-c73cd58 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"c73cd58\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-bb28b73\" data-id=\"bb28b73\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-15cddad elementor-widget elementor-widget-text-editor\" data-id=\"15cddad\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\">\n\t\t\t\t<p>Source by ActivTrader.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>The USDJPY pair has been on a gradual downtrend since March this year, with the pair slumping to a multi-month low, around the 102.90 level, last week. Without a doubt U.S. dollar weakness has been the primary driver of the decline in the USDJPY, as the Federal Reserve\u2019s Q4 programme caused traders to turn bearish [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":1463,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5,9,2],"tags":[42,67,22],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v17.6 (Yoast SEO v20.11) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>USD\/JPY Technical Analysis- US Dollar driven - Youtrading UK<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/youtrading.com\/en\/usd-jpy-technical-analysis-us-dollar-driven\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"USD\/JPY Technical Analysis- US Dollar driven\" \/>\n<meta property=\"og:description\" content=\"The USDJPY pair has been on a gradual downtrend since March this year, with the pair slumping to a multi-month low, around the 102.90 level, last week. 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