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.
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
|Take Profit||113.25, 113.50|
|Support levels||110.00, 110.20, 110.50, 111.00, 111.40, 111.50, 111.75, 112.00, 112.40, 112.85, 113.25, 113.70|
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