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Market Outlook
Greenback slides as data portrays uncertainty. - Zeal Capital Market

Greenback slides as data portrays uncertainty.

01-08-2022 03:46

“Investors are currently concerned about recession than inflation, amid mixed data from United States.”

Greenback took a hit last Friday, nosedived to three-weeks low against other major currencies. Earlier, Fed preferred inflation measure – PCE Price Index shows continuous rise in consumer’s inflation. Both PCE and Core PCE toppled market’s expectation despite Fed’s recent rate hike. Nonetheless, dollar bulls were discouraged as University of Michigan’s consumer inflation expectation eases, signaling Fed to put a halt on policy tightening if future data support such view.

Quick recap on USDJPY

The pair undergoes significant correction as it fails to extend past 140.00 mark.

USDJPY Weekly Technical Analysis

Greenback slides as data portrays uncertainty. - Zeal Capital Market

From weekly perspective, MACD has begun to form bearish momentum, a sign of possible downside extension ahead.

USDJPY Daily Technical Analysis

Greenback slides as data portrays uncertainty. - Zeal Capital Market

From daily perspective, the pair is testing near the threshold of 132.10 and upward trendline. With recent formation of bearish momentum in weekly and daily chart, a breakout will provide confirmation to downside bias.

Trading Idea

Greenback slides as data portrays uncertainty. - Zeal Capital Market

ORDER: SELL STOP

ENTRY: 131.30

STOP LOSS: 133.80

Target 1: 128.40

Target 2: 127.00

ZFX Analyst’s Comment

The pair shows promising downside bias from both weekly and daily perspective. A close below current support may provide us with more confirmation.

Risk Warning: The above content is for reference only, and does not represent ZFX’s position. ZFX does not assume any form of loss caused by any trading operations carried out in accordance with this article. Please be firm in your thinking and do the corresponding risk control.

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