Current trend

Yesterday, the pair strengthened due to strong macroeconomic US releases.

Published on Wednesday, revised data on Q2 US GDP were better than market expectations. Instead of the decline, the index rose from 4.1% to 4.2% and supported the dollar. In addition, Q2 Personal Consumption Expenditures Prices index, published by the Bureau of Economic Analysis of the US Department of Commerce, was also positive.

At the same time, investors are focused on the current process of negotiations on the North American free trade zone, awaiting Canada to join the treaty. Earlier, the US president said that Canada is extremely interested in concluding a trade agreement. The positive outcome of the negotiations will support the US currency.

Today at 14:30 (GMT+2) the publications of July US Personal Spending and Personal Income are expected. Tomorrow at 01:30 (GMT+2), the Bureau of Statistics of Japan will publish data on Consumer Price Index and the Unemployment Rate.

Support and resistance

On the 4-hour chart, the upward trend is in the correction. Bollinger bands are directed upwards, and the price range has expanded, indicating further strengthening of the instrument. MACD histogram keeps buy signal. Stochastic does not give clear signals for opening positions.

Resistance levels: 111.80, 112.27, 112.61, 113.20.

Support levels: 109.33, 109.78, 110.26, 110.84, 111.30.

Trading tips

Long positions can be opened above the level of 112.05 with the targets at 112.55, 112.80 and stop loss 111.85.

Short positions can be opened below the level of 111.30 with the target at 110.80 and stop loss 111.50.

Implementation period: 1–3 days.

US Dollar vs Japanese Yen

BuySellSpread
112.97112.94426

Scenario

TimeframeDay's Range
RecommendationsBUY STOP
Entry Point112.10
Take Profit112.55, 112.80
Stop Loss111.85
Support levels109.33, 109.78, 110.26, 110.84, 111.30, 111.80, 112.27, 112.61, 113.20

Alternative scenario

RecommendationsSELL STOP
Entry Point111.25
Take Profit110.80
Stop Loss111.50
Support levels109.33, 109.78, 110.26, 110.84, 111.30, 111.80, 112.27, 112.61, 113.20
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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