Current trend

Yesterday, due to a lack of significant macroeconomic releases, the USD/JPY pair fell sharply after the closing of profitable long positions after reaching 11-month highs last week. The main factor of the dynamics was the strengthening of USD due to expectations of another rate hike this year, as well as the overall stability of the American economy.

Today there is a lack of key fundamental data from the United States, and traders should pay attention to the technical indicators’ readings.

Support and resistance

On the 4-hour chart, an upward movement is in the correction. The trend for the purchase is still relevant. The pair is near the lower border of Bollinger bands, the price range is expanded, which indicates a possible development of the correction in the short term. MACD histogram is in the negative area, the signal line crosses the zero line and the body of the histogram downwards, forming a signal for opening short positions.

Resistance levels: 113.39, 113.55, 113.95, 114.09, 114.53.

Support levels: 112.81, 112.55, 112.00.

Trading tips

Short positions can be opened from the level of 112.80 with the target at 112.00 and stop loss at 113.20.

Long positions can be opened from the level of 113.55 with the target at 114.55 and stop loss at 113.20.

Implementation period: 1–3 days.

US Dollar vs Japanese Yen

BuySellSpread
112.875112.757118

Scenario

TimeframeDay's Range
RecommendationsSELL STOP
Entry Point112.80
Take Profit112.00
Stop Loss113.20
Support levels112.00, 112.55, 112.81, 113.39, 113.55, 113.95, 114.09, 114.53

Alternative scenario

RecommendationsBUY STOP
Entry Point113.55
Take Profit114.55
Stop Loss113.20
Support levels112.00, 112.55, 112.81, 113.39, 113.55, 113.95, 114.09, 114.53
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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