FOREX CHART ANALYSIS JUN 9 - FOCUS ON USD/JPY
The sessions at the beginning of the week don't have much fluctuation but there are some noticeable changes, especially on the USD/JPY chart. Let's check them out so you can choose the best trading strategies.
- New hope for the search for vaccines. According to a Bloomberg report last weekend, AstraZeneca (AZN) - the Anglo-Swedish pharmaceutical giant - approached American competitor Gilead Science (GILD). Such an agreement would lead to the largest merger of the health sector ever worth around 200 billion GBP (about 250 billion USD).
- The sentiment in the oil market has changed dramatically since the Organization of Petroleum Exporting Countries and its allies, including Russia, collectively known as OPEC+ agreed in April to reduce production to 9.7. million barrels of oil a day in May and June to boost prices.
The price had an unexpectedly false-break. Yesterday's decline was the strongest in more than 2 months. Although the trend line is still holding, the declining momentum is very strong, and the bearish candlestick patterns on both the daily chart and H4 chart keep us from buying. In the short term, it is likely that the price will bounce up at 108 to the MA20 on the H4 chart and then continue to go down.
After the bearish candle ended the previous 9-day upward momentum, prices accumulated without a deep decline. This shows that the buyers still have strength. However, this is not a condition for us to buy. It is likely that price will continue accumulating within the range of 1.12 - 1.14. Who trades ranging can take advantage of this moment. Remember to set Stop Loss tightly when entering orders.
GBPUSD has not changed much compared to yesterday. The main point is that the price has continued to add a new bearish pin bar. I continue to hold the view that the price does not penetrate the 1,270 zone in the short term. You can consider short orders.
USDCAD, after covering the gap, still keeps the downward momentum but the price action shows that the resistance is getting stronger. I continue to warn you, this is the time for us to exit the previous sell orders and wait for a correction to the overhead resistances. However, I do not encourage you to bottom fishing, if any. Don't forget to set Stop Loss.
The bulls have not given up and are building up a rising wedge pattern. I'm still inclined to the possibility that the price will adjust unexpectedly. You should exit any long orders that you have left. Prepare for short-term selling orders.