2012-07-19 17:30:00
1. Current trend of USD/JPY
At yesterday’s trades the pair USD/JPY resumed downward movement towards the lows of Monday at 78.60. By now the lows have already been reached, and the price has rolled back slightly. If “bearish” sentiment continues to dominate, the price will break through support level and will go to two-month low of 77.70. Further growth in JPY can be triggered by the actions of the Bank of Japan which may any time lead to the rise in quotes for the pair USD/JPY.
2. Important levels (Support and Resistance)
We know that “bearish” sentiment continues to dominate. Current situation is as follows: if under existing pressure the price reaches the level of 78.40, further decline to 77.70 will be inevitable. If the price will be preserved in this area, we can expect that the pair USD/JPY will go to a new local lows. We cannot rule out a chance of intervention of the Bank of Japan, weakening of JPY and the rise in the pair USD/JPY to resistance level of 79.15, 79.75 and 80.10.
3. Best entry/exit points
Main scenario: the pair USDJPY will go downward; however, it is also possible that the price will push away from the main support level of 78.40, in this case we will see short-term rise in the pair.
It is recommended to set limits on sale around the first resistance level of 79.15, so that after slight rollback profit taking will be fixed around 77.50. Or we can set stop for buying above the first resistance level of 79.15 and rely on the weakening of the Yen with the help of the Bank of Japan.
4. Supporting facts
MACD histogram has moved into negative area above its signal line and continues to slide down, giving a sell signal for USD/JPY.
Today at в 16:30 Moscow time the US weekly data on initial applications for unemployment benefits is made public. In the last few months this index caused concern among investors. If number of initial applications does not reduce significantly, market can estimate this fact as a reason for additional monetary easing and consequently, decline in the USD.
At yesterday’s trades the pair USD/JPY resumed downward movement towards the lows of Monday at 78.60. By now the lows have already been reached, and the price has rolled back slightly. If “bearish” sentiment continues to dominate, the price will break through support level and will go to two-month low of 77.70. Further growth in JPY can be triggered by the actions of the Bank of Japan which may any time lead to the rise in quotes for the pair USD/JPY.
2. Important levels (Support and Resistance)
We know that “bearish” sentiment continues to dominate. Current situation is as follows: if under existing pressure the price reaches the level of 78.40, further decline to 77.70 will be inevitable. If the price will be preserved in this area, we can expect that the pair USD/JPY will go to a new local lows. We cannot rule out a chance of intervention of the Bank of Japan, weakening of JPY and the rise in the pair USD/JPY to resistance level of 79.15, 79.75 and 80.10.
3. Best entry/exit points
Main scenario: the pair USDJPY will go downward; however, it is also possible that the price will push away from the main support level of 78.40, in this case we will see short-term rise in the pair.
It is recommended to set limits on sale around the first resistance level of 79.15, so that after slight rollback profit taking will be fixed around 77.50. Or we can set stop for buying above the first resistance level of 79.15 and rely on the weakening of the Yen with the help of the Bank of Japan.
4. Supporting facts
MACD histogram has moved into negative area above its signal line and continues to slide down, giving a sell signal for USD/JPY.
Today at в 16:30 Moscow time the US weekly data on initial applications for unemployment benefits is made public. In the last few months this index caused concern among investors. If number of initial applications does not reduce significantly, market can estimate this fact as a reason for additional monetary easing and consequently, decline in the USD.
