Current trend

USD against JPY stays within a wide upward trend due to the strength of the American currency. Yesterday, the pair confidently went up before Fed’s interest rate decision, but as the figure remained at the same level, the investment interest in the dollar was reduced and weakened the currency. Today, the downward momentum has increased, and the pair has reached a key support level of 111.40. However, the positions of USD remain strong due to accelerating economic growth, inflation and a reduction in the unemployment rate in the country. Despite a slight decrease in demand, in the medium term, the recovery of the instrument is expected within the current trend.

Today and on Friday, in the US will be published key releases that can change the situation: data on the labor market, including Nonfarm Payrolls, and releases for indexes and production orders.

Support and resistance

The pair can grow from the current level to local highs and test new ones at 113.50, 113.70. However, the correction can reach the levels of 110.85, 111.00, and the instrument will go upward after that.

On the daily chart and above, technical indicators confirm the growth forecast, MACD keeps the high volumes of long positions, and Bollinger bands are directed upwards.

Resistance levels: 111.75, 112.00, 112.40, 112.85, 113.25, 113.70.

Support levels: 111.50, 111.40, 111.00, 110.50, 110.20, 110.00.

Trading tips

It is relevant to increase the volumes of long positions from the current level with the targets at 113.25, 113.50 and stop loss at the level of 111.30.

US Dollar vs Japanese Yen

BuySellSpread
113.448113.334114

Scenario

TimeframeWeekly
RecommendationsBUY
Entry Point111.42
Take Profit113.25, 113.50
Stop Loss111.30
Support levels110.00, 110.20, 110.50, 111.00, 111.40, 111.50, 111.75, 112.00, 112.40, 112.85, 113.25, 113.70
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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