2016-08-31 11:29:51

Technical performance:

Prev. closure: 102.99; Daily range: 102.86-103.25;
Opening: 102.99; 52-week range: 99.08-123.69;
Annual profit: -14.94%; Previous day's change (%): +1.03.

Analytical review:

  • Last week, USD/JPY retained a powerful support level at 100.00 and the safe heaven currency therefore depreciated against the USD by over 300 points. The dollar continued to rally at yesterday's trading session. The currency pair grew over 1%.
  • The Conference Board, a marketing research group, reported yesterday that the US consumer confidence index had grown 4.5% to 101.1 in August, exceeding market expectations of 97.0;
  • Important statistics on Japan's economy have been released today. According to Japan's Ministry of Economy, Trade and Industry, the country's industrial output remained the same in July. Analysts had predicted a 0.8% growth.
  • The Commitments of Traders Report shows that important market operators have increased the number of their long positions by 946 contracts to 85440 contracts. The number of short positions amounts to 28470 contracts.
  • A news factor is worth attention this week: pending home sales index (today) and US non-farm payrolls (Friday). These events may affect market volatility.

Summary:

  • The positive stats from the USA and Japan's weak data on industrial output put pressure on the dynamics of USD/JPY. According to the Commitments of Traders Report, important operators have increased their long positions.
  • So, we expect that the yen will depreciate against the USD in the nearest future. We advise you to search for market entry points to open long positions.

Trading tips for USD/JPY

Key levels:
Support levels: 102.20, 100.95
Resistance levels: 103.15, 104.25, 105.90

Medium-term trading, H4
The currency is currently trading near a support level at 103.15. Once this level is broken and tested and relevant confirming signals appear (Price Action patterns, for example), we recommend searching for market entry points to open long positions. Risk per trade: no more than 2% of equity. Stop order shall be placed a bit below the signal line. We recommend that prospective profits should be fixed partly at the levels of 104.20, 105.00 and 105.85, with Trailing Stop applied.

Medium-term trading, H4
Medium-term trading, H4

Short-term trading, M15
The currency has crossed a local resistance level of 103.10. If a mirror support level of 103.10 is retained, we advise you to search for market entry points to open long positions. Risk per trade: no more than 3% of equity. Stop order shall be placed a bit below the signal line. We recommend that prospective profits should be fixed partly at the levels of 103.50, 103.80 and 104.20 , with Trailing Stop applied.

Short-term trading, M15
Short-term trading, M15