The USD/JPY pair is moving within a long-term upward trend, despite a fall in early October, when the instrument stopped at a key resistance level of 114.50 (maximum of May and July 2017), and then lost more than 250 points due to the closing of a large amount of profitable long positions at the peak. The decline was a correction within the upward channel. The downward movement stopped at the nearest key resistance, and the pair consolidated above the level of 111.75. Over the past few months, USD has been growing due to to the positive macroeconomic background, and it is likely that the pair may test new local highs at the end of the year.
Today and tomorrow, traders will pay attention to US releases, which can significantly strengthen USD: data on the labor market, durable goods orders and the growth rate of the economy for the third quarter.
Support and resistance
The restoration of the upward trend with the targets at 113.15, 114.00, 114.50, 115.50 is expected. In the long term, the pair can reach the maximum of the end of 2016 at 118.65. An alternative scenario is a reversal of the trend if the price consolidates below the lower border of the current trend, located at 111.40.
Technical indicators give a growth signal, MACD keeps high volumes of long positions, Bollinger bands are directed upwards.
Resistance levels: 112.40, 113.00, 113.15, 113.70, 114.00, 114.50, 115.00, 115.50.
The levels of support are: 112.00, 111.75, 111.40, 110.85, 110.50, 109.55, 109.00.
Long positions can be opened from the current level with the targets at 114.50, 115.50 and stop loss at 110.80.
US Dollar vs Japanese Yen
|Take Profit||114.50, 115.50|
|Support levels||109.00, 109.55, 110.50, 110.85, 111.40, 111.75, 112.00, 112.40, 113.00, 113.15, 113.70, 114.00, 114.50, 115.00, 115.50|
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