Current trend

On Tuesday, the pair USD/JPY strengthened. As there was a lack of significant economic releases from Japan, JPY was trading under the influence of US and European news. Japanese investors continue to monitor trade negotiations with the United States. The country wants its automobiles and industrial goods to have a wide access to the American market in exchange for expanding imports of American agricultural products. As for the proposals of the US Treasury Secretary Steven Mnuchin to include the currency clause in a bilateral trade agreement, the Japanese Minister of Economy Toshimitsu Motegi said that so far there had been no such negotiations.

The key event of the day for the pair will be FOMC Meeting Minutes publication at 20:00 (GMT+2), high volatility is expected on the market. Also, investors should pay attention to US Housing Starts release at 14:30 (GMT+2).

Support and resistance

On the 4-hour chart, the instrument decreases after correction, the pair is trading between the upper border and the middle line of Bollinger bands, the price range is narrowed. MACD histogram is in the negative region, the signal line is directed upwards.

Resistance levels: 112.54, 112.81, 113.39, 113.55, 113.95.

Support levels: 112.07, 111.98, 111.82, 111.62.

Trading tips

Short positions can be opened from the current level with the target at 111.65 and stop loss at 112.50.

Long positions can be opened from the level of 112.55 with the target at 113.39 and stop loss at 112.20.

Implementation period: 1–3 days.

US Dollar vs Japanese Yen

BuySellSpread
113.309113.28326

Scenario

TimeframeDay's Range
RecommendationsSELL
Entry Point112.23
Take Profit111.65
Stop Loss112.50
Support levels111.62, 111.82, 111.98, 112.07, 112.54, 112.81, 113.39, 113.55, 113.95

Alternative scenario

RecommendationsBUY STOP
Entry Point112.55
Take Profit113.39
Stop Loss112.20
Support levels111.62, 111.82, 111.98, 112.07, 112.54, 112.81, 113.39, 113.55, 113.95
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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