Current trend

Over the last month, the USD/JPY pair gained more than 400 points and reached key resistance at the level of 114.50. The main catalyst for the movement of the instrument is the confident strengthening of the USD due to the background of strong fundamental statistics and growth in demand, as well as the weakening of JPY.

Today, quiet sideways movement of the pair is expected before the publication on Friday’s key releases: US data on unemployment and Nonfarm Payrolls statistics.

Support and resistance

In the medium term, a downward correction to the levels of 113.15 and 113.00 is expected, after which an upward wave to new highs will be formed. However, in the case of the publication of strong statistics on the US labor market, the pair may sharply start to grow, breakout the key resistance level of 114.50 and reach the levels of 115.00, 115.50, 116.30 and 118.65.

Technical indicators confirm the upward forecast: the volume of long positions of MACD increased significantly, Bollinger bands are directed upwards.

Resistance levels: 114.50, 115.00, 115.50, 116.30, 117.00, 118.65.

Support levels: 114.00, 113.70, 113.15, 113.00, 112.85, 112.40, 112.00, 111.75, 111.40.

Trading tips

It is relevant to increase the volumes of long positions from the current level and from the levels of 114.00, 113.15, 113.00 with the target at 118.65 and stop loss at 112.60.

US Dollar vs Japanese Yen

BuySellSpread
112.529112.50128

Scenario

TimeframeDay's Range
RecommendationsBUY
Entry Point114.27
Take Profit118.65
Stop Loss112.60
Support levels111.40, 111.75, 112.00, 112.40, 112.85, 113.00, 113.15, 113.70, 114.00, 114.50, 115.00, 115.50, 116.30, 117.00, 118.65

Alternative scenario

RecommendationsBUY LIMIT
Entry Point114.00, 113.15, 113.00
Take Profit118.65
Stop Loss112.60
Support levels111.40, 111.75, 112.00, 112.40, 112.85, 113.00, 113.15, 113.70, 114.00, 114.50, 115.00, 115.50, 116.30, 117.00, 118.65
USD/JPY: the pair is growing

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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