Current trend

The dollar against the Japanese yen remains in broad lateral consolidation. Throughout June the pair fluctuates in the range of 150 points, unsuccessfully testing the local maximum at 110.85 and returning to the levels of 109.25, 109.55. At the end of last trading week, the pair once again went down and stopped above the level of 109.55. The catalyst for the decline was the weak data on the US labor market.

Major releases of the current trading week are assigned to its second half: the final data on the growth rate of the US economy for the first quarter will come out; Japan will respond with releases on the consumer confidence index, industrial production and consumer price index.

Support and resistance

The probability of dollar growth is high at the end of this month, after the release of the US Federal Reserve report. The growth of the pair will resume to the levels of 111.00, 111.40, and further – to the upper border of the range (112.40). Nevertheless, technical indicators indicate a high probability of a lateral channel: the volumes of long positions of MACD have significantly decreased, and the signal line tends to zero; The Bollinger bands almost in a horizontal position.

Support levels: 109.25, 109.00, 108.45, 108.15, 107.70, 107.30, 107.00, 106.50.

Resistance levels: 109.55, 109.85, 110.00, 110.50, 111.00, 111.40, 112.40.

Trading tips

Volume of long positions can be increase at the current level with targets at 111.00 and 112.40 and stop loss at 108.00.

US Dollar vs Japanese Yen

BuySellSpread
110.896110.87422

Scenario

TimeframeWeekly
RecommendationsBUY
Entry Point109.66
Take Profit111.00, 112.40
Stop Loss109.05, 108.00
Support levels106.50, 107.00, 107.30, 107.70, 108.15, 108.45, 109.00, 109.25, 109.55, 109.85, 110.00, 110.50, 111.00, 111.40, 112.40
USD/JPY: the dollar will grow

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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