The prolonged September growth of the American currency against the yen was replaced by a rapid fall.
In early October, the pair managed to reach the new local maximum of 2018 at the level of 114.50, which was also the upper border of the uptrend. The decline was caused by a fall in demand for USD due to the fixation of long positions at the local maximum and an increase in the volume of short positions. For several days, the pair lost more than 250 points. Yesterday the instrument tested the level of 111.85, however, having failed to overcome it, consolidated above. Now, the pair is traded in a lateral consolidation.
Today, there're no important releases from the USA and Japan.
Support and resistance
During the day, consolidation will continue, the instrument will be traded in a narrow lateral channel. In the future, a downward impulse will remain with targets at 111.00, 110.85 (lower border of the medium-term uptrend). Despite expectations of a further decline in the short term, the pair remains in the uptrend, so the growth is more likely in the medium term. Thus, a return to 114.00, 114.50 should be expected.
Technical indicators on W1 chart and above keep the growth signal: MACD indicates the preservation of the high volume of short positions, Bollinger Bands are directed upwards.
Support levels: 112.00, 111.75, 111.40, 111.00, 110.50, 110.20, 109.85, 109.55, 109.25.
Resistance levels: 112.40, 112.85, 113.00, 113.15, 113.70, 113.85, 114.00, 114.50, 115.30.
In this situation, long positions may be opened from the current level with targets at 114.00, 114.50 and stop loss at 110.50.
US Dollar vs Japanese Yen
|Take Profit||114.00, 114.50|
|Support levels||109.25, 109.55, 109.85, 110.20, 110.50, 111.00, 111.40, 111.75, 112.00, 112.40, 112.85, 113.00, 113.15, 113.70, 113.85, 114.00,|
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