Oil and Japanese Yen Could Be the Right Choice for Trading This Week

Oil rises on the bullish news – new stimulus hopes and production cut by Iraq and Saudis. We also take a closer look at the USDJPY pair. Here’s our technical outlook for this week.

SimpleFX USOIL Chart Analysis: August 11, 2020, 11 a.m. UTC

We see an upward movement of the market inside the yellow and green channels. After the price rebound from the intersection of the lower lines of these two channels, we saw a smooth increase in the price.

SELL Oil BUY Oil

It is likely that in the near future USOIL rise will continue to the upper line of the yellow channel and the resistance of 44.48. If the resistance is broken, we can see the market rise to the upper line of the green channel, on the wall of which there is a resistance of 46.69.

However, if we see a decline to the support of 41.25, and then a break of the lower green line, then in the following trading days, a decline to the 40.27 region, which is on the lower yellow line, is possible.

Perhaps we will add this symbol to our watchlist.

SimpleFX USDJPY Chart Analysis: August 11, 2020, 11 a.m. UTC

For a long time, USDJPY moves in a downward direction inside the green channel. Not so long ago, we saw the price rebound from the lower line of this channel, after which the market began to move in an upward direction.

Now the price is in the upper zone of the green channel, which may mean that the market is dominated by bulls and they may be heading to the resistance level of 106.77, which is on the upper line of this channel.

SELL USDJPY BUY USDJPY

However, if the bulls lose their strength, bears will take their place and send the currency pair to the lower line of the green channel and the support level of 103.41.

In the current situation, it is difficult to give a more accurate forecast due to the inability to build additional channels.