Current trend

The pair is trading at the level of 2-months highs. Investors sell the Japanese currency in favor of USD in view of an increase in the yield of ten-year US Treasury bonds, which have crossed the level of 3%. As the traders are waiting for US Fed’s interest rate rise at least twice this year, and the Bank of Japan refuses to tighten the monetary policy, the spread of the bonds of the countries is growing, which makes USD more attractive. The growth of February Japanese PMI in all the sectors by 0.4% was positive for the yen but did not affect the pair.

Today the traders are focused on the US Initial Jobless Claims release at 14:30 (GMT+2), the volatility is expected to be moderate.

Support and resistance

On the 4-hour chart, the pair is growing along the upper border of Bollinger Bands. MACD histogram is in the positive zone, keeping a signal to open long positions.

Resistance levels: 109.50, 110.00, 110.50, 111.00.

Support levels: 109.00, 108.70, 108.50, 108.00, 107.65, 107.40, 107.10, 106.80.

Trading tips

Long positions can be opened at the current level with the target at 110.00 and stop loss 109.00.

Short positions can be opened at the level of 109.00 with the target at 108.50 and stop loss 109.30.

Implementation period: 1–3 days.

US Dollar vs Japanese Yen

BuySellSpread
112.579112.55326

Scenario

TimeframeDay's Range
RecommendationsBUY
Entry Point109.34
Take Profit110.00
Stop Loss109.00
Support levels106.80, 107.10, 107.40, 107.65, 108.00, 108.50, 108.70, 109.00, 109.50, 110.00, 110.50, 111.00

Alternative scenario

RecommendationsSELL STOP
Entry Point109.00
Take Profit108.50
Stop Loss109.30
Support levels106.80, 107.10, 107.40, 107.65, 108.00, 108.50, 108.70, 109.00, 109.50, 110.00, 110.50, 111.00
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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