Daily London Session Watchlist: USDJPY


Feb 27, 2020
The Donald may have tried to play down Coronavirus fears in a speech earlier today but a lack of major data releases left traders worrying over the potential pandemic’s impact on global economic activity.
I don’t see top-tier reports scheduled in early London trading so it’s likely that traders will extend economic themes (read: risk aversion) from the previous trading sessions. The tides could turn during the U.S. session, however, when Uncle Sam prints its second GDP reading, durable goods orders, and new home sales numbers.
USD/JPY, in particular, looks ready for a mid-week bounce as it nears the 109.75 – 110.00 previous resistance and 61.8% Fib retracement level. It also doesn’t hurt that MarketMilk is still on the “bullish” side with the longer-term SMAs even as it’s “bearish” on shorter-term daily SMAs.


Dollar bulls can wait to see how London session traders react to a potential bounce around 110.00. A long trade at the area could yield decent pips with 111.25 or even 112.00 as profit targets.
USDJPY-trend1-768x730.pngMeanwhile, dollar bears can also wait for a break below the Fib levels and the 109.50 zone in case USD/JPY’s downswing extends all the way to 108.50 or 108.00 previous support levels..
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