CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 64% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the High risk of losing your money.

USD/JPY riding the stock markets in thin trade, faded on 111 handle

12/27/2018, 10:25:16 AMBasics of Trading
USD/JPY riding the stock markets in thin trade, faded on 111 handle

USD/JPY is currently trading at 111.07 and struggles much past the figure, meeting supply.  Overnight, the Dow Jones Industrial Average rallied by more than 1,000 points, climbing by around 1,086 points, or 5%, to end near 22,878. while the S&P 500 SPX, +4.96% advanced around 117 points, or 5%, to close near 2,468. The Nasdaq Composite COMP, +5.84% rose around 361 points, or 5.8%, to finish around 6,554. 

Politics in focus

The White House has denied a CNN report that Treasury Secretary Steven Mnuchin’s job was in “serious jeopardy.” The White House economic adviser Kevin Hassett was interviewed in televisions and he said that he was confident that President Donald Trump was happy with Mnuchin. The WSJ also reported that Hassett assured that the Federal Reserve Chairman Jerome Powell’s job was “100% safe.”

USD/JPY levels

Valeria Bednarik, Chief Analyst at FXStreet explained that the 4 hours chart shows that, after breaking above it, the pair has held above a strong Fibonacci support at around 110.75, the 38.2% retracement of this year rally after piercing it last Monday. "Technical indicators in the mentioned chart have corrected extreme oversold readings but lost upward strength below their midlines, as the price remains far below its moving averages, suggesting the pair could resume its decline anytime. A recovery above 111.60, however, will bring some relief to speculative bulls. In the meantime, the pair is still unable to recover above its 200 DMA after breaking below it last week."

Support levels: 110.75 110.40 110.10

Resistance levels: 111.20 111.60 112.00