This week was very crucial for the currency market with optimism amid the definition coming from the US presidential elections. Something that added weight to this optimistic sentiment was that the Pfizer laboratory's coronavirus vaccine turned out to be more than 90% effective in preventing COVID-19.
The Japanese yen has always been a safe haven currency. Last week, along with Gold, we had observed its strengthening near the lows of 103.17.
However, this week we saw the yen rebound from these lows to yesterday's high at t he105.63 area of the 7/8 yellow line of the Murrey indicator.
Now, according to the chart, the yen is currently trading at 104.87 below the 200-day moving average, which could continue its decline to the 61.8% Fibonacci zone at 104.10.
Therefore, we can sell below 105.10 with the targets at 104.10. After a breakthrough above 105.15, we could buy with the targets at 105.65 and 106.25.
The Eagle indicator is giving a bearish signal in the short term. Therefore, if there is a pullback we can sell.
Our key levels for November 10:
- Sell bellow EMA 200 days around 105.10 with take profit at 104.60 and 104.10. Set stop loss above 105.40.
- Buy above 105.25 with the targets at 105.65 and 106.20. Set stop loss below EMA 200.
