In the face of weak data from the euro zone and the news of Russian troops invasion in Ukraine, markets reacted with a slight sale of risky assets, which also gave effects on USD/JPY pair (strongly correlated with the risk appetite).
Trading on Ninja is tough since yesterday. Today’s trading started with declines from Pivot Point level and the news about Russian invasion pushed the price below Pivot S1. This is a good intraday selling signal, especially if the price moves back to the S1 level and stays below it. However, if the wave will gain momentum, there might be no trading opportunity.
Last three days low was broken tonight at 103.80 – it acted as a starting point for bear attack this time and we expect further declines to this zone.
The demand side can win the momentum near supports: 103.50 (Pivot S2, low from August 22) and 103.30 (Pivot S3, demand base from August 20). Technically speaking, we are still in the last wave upward correction, which has a chance to end near 127.2% of the side-way movement expansion (which is around 103.50). However, the fundamentals are clearly maintaining the current tone. If the Russian attack will be confirmed or even gain momentum, we can expect return to the vicinity of 101.00 – which is the point where last increases started.
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