Current trend

Today yen grew against US dollar due to the growth of the November Japanese Labor Cash Earnings by 0.9%, which exceeded the expectations of 0.6%. The increase of the indicator leads to the growth of consumption and is favorable for JPY.

Due to the lack of macroeconomic news in the beginning of the week, the traders are focused on FOMC Member Kashkari Speech at 17:00 (GMT+2) today. Redbook index release at 15:55 (GMT+2) and API Weekly Crude Oil Stock publication are worth traders’ attention, too.

Support and resistance

On the daily chart, the pair is moving within the sideways channel, formed by Bollinger bands. MACD histogram is around the zero line and does not give a signal to enter the market, keeping minimal volumes.

Resistance levels: 112.90, 113.08, 113.30, 113.50, 113.70.

Support levels: 112.30, 112.15, 111.75, 111.50, 111.00.

Trading tips

Short positions can be opened at the current level with the target at 112.15 and stop loss at 112.90. Implementation period: 1–3 days.

Long positions can be opened at the level of 113.10 with the target at 113.70 and stop loss at 112.75. Implementation period: 3–5 days.

US Dollar vs Japanese Yen

BuySellSpread
111.929111.90722

Scenario

TimeframeDay's Range
RecommendationsSELL
Entry Point112.65
Take Profit112.15
Stop Loss112.90
Support levels111.00, 111.50, 111.75, 112.15, 112.30, 112.90, 113.08, 113.30, 113.50, 113.70

Alternative scenario

RecommendationsBUY STOP
Entry Point113.10
Take Profit113.70
Stop Loss112.75
Support levels111.00, 111.50, 111.75, 112.15, 112.30, 112.90, 113.08, 113.30, 113.50, 113.70
USD/JPY: general analysis

The material published on this page is produced by the Claws&Horns Company and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC; furthermore it has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

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