Current trend

The US dollar against the Japanese yen continues to grow due to the favorable fundamental statistics in the key sectors of the US economy. Additional support for the US currency was provided by comments from representatives of the US Federal Reserve on the continuation of the tightening of monetary policy and raising the key interest rate.

Strong data on major indices, the construction sector and industrial production of the United States came out this week. Since the beginning of the trading week the pair has gained more than 130 points and reached the level of 111.00.

Support and resistance

Over the past few trading weeks, the pair broke through a number of strong resistance levels and will continue to strengthen in the medium term to local highs, reached in July and October last year (114.50 and 115.50). Technical indicators confirm the growth forecast: MACD indicates a high volume of long positions, the Bollinger bands are directed upwards.

Support levels: 110.50, 109.85, 109.55, 109.00, 108.45, 108.15, 107.75, 107.30.

Resistance levels: 111.00, 111.50, 111.75, 112.00, 112.40, 112.85, 113.25, 113.70, 114.50, 115.50.

Trading tips

In this situation, long positions can be opened at current level and pending buy orders can be placed at the levels of 110.50, 109.85 with targets of 112.00, 112.40, 114.50, 115.50 and stop loss at 108.40.

US Dollar vs Japanese Yen

BuySellSpread
112.902112.87725

Scenario

TimeframeWeekly
RecommendationsBUY
Entry Point111.00
Take Profit112.00, 112.40, 114.50, 115.50
Stop Loss108.40
Support levels107.30, 107.75, 108.15, 108.45, 109.00, 109.55, 109.85, 110.50, 111.00, 111.50, 111.75, 112.00, 112.40, 112.85, 113.25, 113.70

Alternative scenario

RecommendationsBUY LIMIT
Entry Point110.50, 109.85
Take Profit112.00, 112.40, 114.50, 115.50
Stop Loss108.40
Support levels107.30, 107.75, 108.15, 108.45, 109.00, 109.55, 109.85, 110.50, 111.00, 111.50, 111.75, 112.00, 112.40, 112.85, 113.25, 113.70
USD/JPY: uptrend is getting stronger

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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