Yen to buy, but there is a serious signal to take into account

USDJPY Analysis 09/09/2019

The Yen is one of the most important safe havens alongside the Swiss franc and gold. In the past two weeks, the greenback has appreciated strongly against all major currencies and gold, but the strongest performances came from the franc and gold.

Our recommendation was to buy the yen at 105, and the pair achieved the lowest price at 104.45.

We have questioned whether 105 will hold as long-term support, or will market concerns give the yen a chance to break it down?

We can now respond to the question that the pair has shown great strength for the 105 level, and now is not the time to talk about the Yen outperforming this level. Dollar bulls are also expected to find support around this area.

H4 Timeframe Chart

It seems that the dollar is still selling against the yen, so we recommend buying the yen around 107.30 with 106 being the first target followed by 105, with a four-hour closing above 107.30 is a sign of liquidating all USD short positions against the yen.

Author : Hisham Mancy