2016-08-11 11:41:39

Technical data of the currency pair:

Previous closing: 101.29; Daily range: 101.03-101.49;
Opening: 101.29; 52-week range: 99.08-124.64;
Annual income: -19.17%; Change in % for the previous day: -0.60.

Analytical review:

  • ​Since the end of July the JPY has grown by 450 points against the USD. This week, the pair maintained resistance level of 102.55, and the Yen continued to rise;
  • It became known this week that productivity in the US non-agricultural sector fell by 0.5% in Q2 against the forecast of the rise of 0.4%;
  • According to the Japanese Ministry of economy, trade and industry, business activity index in the service sector grown to 0.8% in July against the forecast of 0.3%;
  • "Commitments of Traders" shows the increase in long positions by 1686 contracts, up to 70636. 33483 contract have been concluded for short positions;
  • This week news will include US index of retail sales and producer price index (on Friday) and the in the US (on Friday). This news can affect market volatility and movement in the pair.

Summary:

  • ​US statistics have decreased expectations of the interest rate increase in the USA. Positive Japanese statistics support demand for the JPY. According to “COT” large investors have increased the number of long positions.
  • It is likely that the JPY will grow against the USD in the near future. It is advisable to open long positions.

Trading tips for the currency pair USD/JPY

Key levels:
Support levels: 100.95 and 99.50.
Resistance levels: 101.95 and 102.55.

Medium-term trading, H1
At the moment, the currency is traded in the demand zone 101.45-101.65. If the pair maintains this zone and in case of the respective confirmation (such as Price Action pattern), it is recommended to open short position. 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 100.70, 100.10 and 99.60 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 101.10-101.35. 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