Current trend

JPY is falling against USD. At the moment, the rate is 110.35, the nearest important resistance is at the level of 110.54 or 6/8 Murrey.

The global demand for the US currency is largely due to Fed’s, which continues to raise interest rates, making carry trade transactions attractive due to the differential of rates between countries. In Japan, economic growth slowed: Q1 GDP decreased by 0.6% compared to the previous year. In addition, the trade balance deficit grew to 578.3 billion yen against the forecast of 205.2 billion yen, as the import of aircraft and oil products from the USA increased significantly (+14%). On the other hand, experts hope that economic growth will continue due to an increase in global demand and the demand for Japanese goods in foreign markets. The main trading partner of the country is still China.

Today, important news on the US economy will also be published, such as Initial Jobless Claims and housing market data.

Support and resistance

Stochastic is around 67 points and does not give signals for opening positions.

Resistance levels: 110.54, 110.90.

Support levels: 110.20, 110.00.

Trading tips

Long positions can be opened after the breakout of the level 110.54 with the targets at 111.13-111.32 and stop loss 110.40.

US Dollar vs Japanese Yen

BuySellSpread
111.106111.08521

Scenario

TimeframeDay's Range
RecommendationsBUY
Entry Point110.64
Take Profit111.13, 111.32
Stop Loss110.40
Support levels110.00, 110.20, 110.54, 110.90
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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