2016-06-29 11:27:30

Technical data of the currency pair:

Previous closing: 102.77; Daily range: 102.18-102.78;
Opening: 102.77; 52-week range: 105.52-125.86;
Annual income: -10.79%; Change in % for the previous day: +0.68;

Analytical review:

  • Last week the Yen has grown by over 500 points against the USD. Local support and resistance levels are 100.80 and 103.15. The pair USD/JPY may undergo correction;
  • Today, important Japanese statistics was released. According to Ministry of Economy, Trade and Industry of Japan the volume of retail sales fell by 1.9% in May against expectations of 1.6%;
  • Growth of the US GDP in Q1 was revised upward to 1.1% against the previous level of 0.8% and market expectations of 1.0%;
  • Commitments of Traders” shows ambiguous picture. Large investors have increased the number of long positions by 3502 contracts. Short positions have been also increased by 1145 contracts.
  • This week attention shall be paid to the following data: pending home sales in the US real estate market (today), Tankan sentiment index of large manufactures (Friday). This news can affect market volatility and movement in the pair.

Summary:

  • Recent Brexit, weak Japanese statistics, optimistic expectations on the economic growth in the US and high volatility in the financial markets put pressure on the JPY. According to “COT” large investors do not have common opinion about the Yen.
  • In the near future it is advisable to enter the market from the key support and resistance levels.

Trading tips for the currency pair USD/JPY

Key levels:
Support levels: 101.50, 100.80 and 99.00.
Resistance levels: 103.15 and 104.25.

Medium-term trading, H1
At the moment, the currency is traded in the demand zone 101.50-102.05. If the pair maintains this zone and in case of the respective confirmation (such as Price Action pattern), it is recommended to open long position. Risk per trade is not more than 2% of the capital. Stop order can be placed slightly below the signal line. Take profit can be placed in parts at the levels of 103.10, 103.70 and 104.20 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 102.15-102.60. 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