2016-06-24 12:20:45

Technical data of the currency pair:
Previous closing: 106.17; Daily range: 99.03-106.84;
Opening: 106.17; 52-week range: 105.52-125.86;
Annual income: -10.79%; Change in % for the previous day: +0.53;

Analytical review:

  • During the Asian session the Yen has grown over 500 points against the USD, after breaking down and consolidating below the level of 103.70. At the moment the pair’s support and resistance levels are 100.40 and 103.15;
  • Demand for the safe-haven currencies has increased amid the decision of the UK to leave the EU. Over 90% of population took part in voting, 51.7% of votes were for the exit from the EU. Investors are concern that other members of the EU will wish to exit from the Union;
  • World leaders try to persuade the UK to stay in the EU. Brexit will affect the political and economic situation in the country. Demand for safe assets will increase;
  • According to the Bank of Japan, price index for corporate services (CSPI) in the country rose by 0.2% last month against the forecast of 0.1%;
  • Commitments of Traders” shows ambiguous picture. Large investors have reduced the number of long positions by 39988 contracts. Short positions have declined by 28560 contracts.
  • UK’s decision to leave the EU and increasing demand for safe-haven assets, support the Yen. According to “COT” large investors do not have common opinion about the Yen.
  • In the near future the Yen is likely to grow against the USA. It is advisable to open short positions.

Trading tips for the currency pair USD/JPY

Key levels:
Support levels: 100.40 and 99.00.
Resistance levels: 103.15 and 103.70.

Medium-term trading, H1 
At the moment, the currency is traded at resistance level of 103.15. If the pair maintains this level and in case of the respective confirmation (such as Price Action pattern), it is recommended to open short positions. Risk per trade is not more than 2% of the capital. Stop order can be placed slightly above the signal line. Take profit can be placed in parts at the levels of 101.50, 100.40 and 99.25 with the use of trailing stop.

Medium-term trading, H1
Medium-term trading, H1

Short-term trading, М15
Currently, the currency is traded in the range of 100.95-102.85. It is advisable to enter the market after breaking out and testing of this zone. Positions can be opened near the signal line and the nearest support/resistance levels. Risk per trade is not more than 3% of capital. Stop order can be placed slightly above/below the signal line. Take profit can be placed in parts at the levels of 50%, 30% and 20% with the use of trailing stop.

Short-term trading, М15
Short-term trading, М15