Current trend

The US dollar weakened against the yen on Thursday amid rising retail sales in Japan: the indicator grew by 1.5% YoY, exceeding the forecast by 0.3%.

Thursday US Personal Spending and Income data met the market's expectations.  Personal Spending index remained at the level of 0.4%, and Income one decreased from 0.4% to 0.3%. Published today, data on Tokyo CPI ex Fresh Food (YoY) provided support for the yen: it exceeded the forecast, recording an increase of 0.9%. Industrial Production in Japan grew by 2.3% (with the forecast of 1.0%). At the same time, the growth of unemployment by 0.1% (compared to the previous value) had a negative impact on the rate of the Japanese currency.

Today, investors should focus on Chicago PMI publication (15:45 GMT+2), moderate volatility is expected on the market.

Support and resistance

On the H4 chart, the pair corrected to the lower border of Bollinger Bands, the price range is widened, which indicates a possible continuation of the uptrend. MACD histogram is in the positive area, the signal line is reversing down.

Support levels: 110.68, 110.31, 110.10, 110.00, 109.76.

Resistance levels: 110.86, 111.25, 111.48, 111.85.

Trading tips

Sell orders may be opened from the level of 110.50 with the target at 110.00 and stop loss at 110.80.

Long positions may be opened from 111.30 with the target at 111.80 and stop loss at 111.00.

US Dollar vs Japanese Yen

BuySellSpread
112.875112.757118

Scenario

TimeframeDay's Range
RecommendationsSELL STOP
Entry Point110.50
Take Profit110.00
Stop Loss110.80
Support levels109.76, 110.00, 110.10, 110.31, 110.68, 110.86, 111.25, 111.48, 111.85

Alternative scenario

RecommendationsBUY STOP
Entry Point111.30
Take Profit111.80
Stop Loss111.00
Support levels109.76, 110.00, 110.10, 110.31, 110.68, 110.86, 111.25, 111.48, 111.85
USD/JPY: general review

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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