Yen received additional support

23 March, 2017

Growing worries around Trump's policy turned on risk-off mode. Besides, the yen received additional support from stronger Japanese trade balance data, with the monthly trade surplus reaching nearly seven-year tops.

Current situation

The pair preserved its negative undertone on Wednesday. The US dollar opened bearish and extended its sell-off afterwards. Sellers were driving the price lower the whole night and the morning and approached 111.00 at noon. The 4 hours chart showed that the major continued developing well below the moving averages. The 50-EMA crossed the 100-EMA downwards. The 50 and 100 EMAs pointed lower while the 200-EMA was neutral in the same chart. The resistance is highlighted at 112.00, the support comes in at 111.00.

The MACD histogram decreased which is a sell signal. RSI advanced south which confirms the current downward movement.

Trading recommendations

After a daily close below the level of 111.00 we could see the pair extending down to the 110.00 region during the next sessions.


Source   Presented by Fort Financial Services
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