inakocibelli
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The yen rose to a fresh 18-month highs against the weaker dollar on Monday. Last week the pair ended 4.49% down, the worst weekly performance since 2008.
Over the weekend, Japan’s Finance Minister Taro Aso, said that the strength of the yen was “extremely concerning”, but most traders expect Japan’s official to intervene in the foreign exchange market in order to balance out the yen.
The dollar remained under pressure, after the Federal Reserve kept interest rates on hold and indicated that, any future rate hikes would be data depended. Also data on Fridays showed that the U.S. economy grew at the slowest rate in 2 years, in the first quarter, with gross domestic product increasing just 0.5% from last year.
The Fibonacci 38.2% retracement indicates a supply level at 107.500, with the RSI level at the 30 are also leaning towards a more bearish trend.
Monthly candle closed under a major resistance level, as well as this is a historical area of resistance.
Our entry will be at 107.500 , our stop will only come in play if the next monthly candle closed above this resistance area which is 107.500\, remember that this is a monthly wealth trade, so we need to wait until the next monthly close. Our first target will be at 105.00, I will take half of profit at this point and continue on the ride down to 102.500 only if pair closes under the 105.00 area.
Over the weekend, Japan’s Finance Minister Taro Aso, said that the strength of the yen was “extremely concerning”, but most traders expect Japan’s official to intervene in the foreign exchange market in order to balance out the yen.
The dollar remained under pressure, after the Federal Reserve kept interest rates on hold and indicated that, any future rate hikes would be data depended. Also data on Fridays showed that the U.S. economy grew at the slowest rate in 2 years, in the first quarter, with gross domestic product increasing just 0.5% from last year.
The Fibonacci 38.2% retracement indicates a supply level at 107.500, with the RSI level at the 30 are also leaning towards a more bearish trend.
Monthly candle closed under a major resistance level, as well as this is a historical area of resistance.
Our entry will be at 107.500 , our stop will only come in play if the next monthly candle closed above this resistance area which is 107.500\, remember that this is a monthly wealth trade, so we need to wait until the next monthly close. Our first target will be at 105.00, I will take half of profit at this point and continue on the ride down to 102.500 only if pair closes under the 105.00 area.
