Transcript of Video
Hello everyone, this is today’s video analysis for September 7, 2018. Today we’re looking at the US Dollar versus the Japanese Yen [USDJPY] for today’s trade analysis.
Starting here on the daily timeframe, we’re looking at the market coming down into support, and it has been into this same support for the past two weeks or so. Let’s go ahead and zoom it in on the chart. You see what the trend has been. The black trend line. The rising trend. The red trend line. A little bit of a falling trend. But again, for the past two weeks, the black box is really where we want to focus our attention on.
Let’s zoom it in on that. And as we zoom it in, you could see the support right now. Orange-shaded area. 110.70, 110.95 is that orange zone. We’ve challenged it. We’ve tested it a couple of times in the past few weeks. Unable to sustain a hold or break underneath it, and moving right back up to the green-shaded area, which is now 111.40, 111.55. So, we’ve seen it bouncing around in here for a while.
It’s nothing new. We’ve seen it do it in the past before. You see these two blue circles, where the market found support at the orange zone and resistance at the green zone. Also, left-hand side of the chart. Black circles show resistance into that same orange-shaded area. So, we know that this orange zone, again, 110.70, 110.95, is a significant decision point. Historically as resistance: black circles. Support: blue circles. And now of course the current zone or range that we’ve been in for the USDJPY.
I told everybody in the Trade Room. Just because yesterday’s candle was a big red candle doesn’t mean it’s going to continue to go lower because we saw that before. Even within the same range here, we saw a big red candle. Bearish move. Pushed down, found support, and turned back higher again.
In the past 24 hours, we’ve seen actually the market spike all the way down to 110.40, the pink-shaded area, and then suddenly turned back around and get back inside the orange zone. So, it was a temporary spike underneath the orange zone to the pink zone. We also, interesting enough, have the 100-period simple moving average coming up into this same area. Obviously the last time we tested this moving average, it bounced back up and went back up.
So, you could see the support at the moving average here. And then of course here we are again at this same moving average. So, for the day today, of course first off, it’s important for me to point out the fact that at 8:30AM Eastern US time, about 45 minutes from the recording of this video, 40 minutes from the recording of this video, we have significant news. We have Canadian news. US non-farm payrolls popping up in a little bit less than an hour from now.
We definitely need to pay attention to that news because it could be a game changer. It could be a situation changer, which changes the fact that we’re finding support here and it could go lower on poor news for the USD. Of course if it’s positive, we may look for it back to the green zone or higher. So, we need to keep an eye on the news. Probably prudent not to enter a new trade prior to that news, but keeping an eye on what happens after that news will be the main focus.
100-period moving average. Orange-shaded area: support. So, we’re looking for one of two things here. Either it’s going to continue the status quo. Support here at the orange zone. The dip to the 100-period moving average. It’s going to go back up. Challenge the green zone as resistance. And of course if it breaks the green zone, we’d look for it to go higher. Otherwise, poor news, we could send this back lower again and maybe break the moving average, break the pink zone, and begin a new fall here for the USDJPY.
So, it’s really important what happens right around this 110.95, 110.70-level today for the USDJPY.
From Forex Traders Daily, this has been your daily analysis with Ross. If you would like to get Ross’ analysis on all the currency pairs he’s watching and all the trades he takes today, join him in his live Trade Room by clicking on the link below. Please leave any comments you have about today’s video in the comment section below.