2016-07-22 11:18:10

Technical data of the currency pair:

Previous closing: 105.86;
Daily range: 105.57-106.26;
Opening: 105.85;
52-week range: 99.08-125.29;
Annual income: -14.71%;
Change in % for the previous day: -0.96.


Analytical review:

  • Since the beginning of July, the Yen fell by over 600 points against the USD. During yesterday's trading session, the rally in the USD stopped at the resistance level of 107.35, and the currency pair fell by 0.96%;
  • Yesterday’s U.S statistics showed that index of manufacturing activity by Fed Philadelphia in July was at the level of -2.9 against +4.7 a month earlier and the forecast of +5.0;
  • According to the US National Association of realtors sales on the secondary housing market in June increased to 5.57M against market expectations of 5.48 M;
  • “Commitments of Traders” shows the rise in the long positions by 9992 contracts, up to 67558. 106073 contracts have been made for the short positions;
  • Technical analysis shows that the pair may undergo correction. The currency pair maintained at the strong resistance level of 107.35, which led to the rise in the Yen by 150 points. After breaking out and testing of the key support level, correction in the pair will be possible.

Summary:

  • Ambiguous American statistics and possibility of correction in the pair USD/JPY support demand for the safe-haven currency. According to “COT” large investors have increased the number of long positions;
  • In the near future the Yen is likely to rise against the USD. It is advisable to open short positions.

Trading tips for the currency pair USD/JPY

Key levels:
Support levels: 105.40 and 103.85.
Resistance levels: 106.35 and 107.35.

Medium-term trading, H1
At the moment, the currency is traded in the demand zone 105.95-106.35. If the pair maintains this zone 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 104.85, 103.90 and 103.50 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 105.65-106.10. After breaking out and testing of the lower limit of the range (105.65), it is advisable to open short positions. Risk per trade is not more than 3% of capital. Stop order can be placed slightly below the signal line. Take profit can be placed in parts at the levels of 105.30, 104.90 and 104.50 with the use of trailing stop.

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