Current trend

On Friday, the yen strengthened against the dollar amid the visit of Japanese Prime Minister Shinzo Abe to China.

During the meeting with Chinese Prime Minister Li Keqian, 50 agreements on cooperation in various fields were signed. In particular, the parties agreed to intensify cooperation in the field of innovation, in the field of securities, and to simplify customs clearance procedures, which is especially important for trade. Today at the opening of the Asian session, the yen strengthened against the US currency after the release of favorable data on retail sales in Japan: in September, the indicator grew by 2.1% YoY, exceeding the forecast of 1.6%.

Macroeconomic events that can affect the instrument today include the core PCE index in the USA. It is expected that in monthly terms, the value of the indicator will increase to 0.1% in September from 0.0% a month earlier, and in annual terms, it will remain unchanged at 2.0% over the same period. Confirming forecasts can support the dollar.

Support and resistance

On H4 chart, there is a downward correction, and the instrument is traded between the lower and middle lines of Bollinger Bands. MACD histogram is in the negative zone keeping a signal for the opening of short positions.

Support levels: 111.71, 111.62, 111.37.

Resistance levels: 112.00, 112.09, 112.21, 112.44, 112.54, 112.67, 112.87.

Trading tips

Long positions may be opened from the current level with the target at 112.44 and stop loss at 111.80.

Short positions may be opened from the level of 111.60 with the target at 111.00 and stop loss at 111.90.

Implementation period: 1-3 days.

US Dollar vs Japanese Yen

BuySellSpread
112.875112.757118

Scenario

TimeframeDay's Range
RecommendationsBUY
Entry Point112.12
Take Profit112.44
Stop Loss111.80
Support levels111.37, 111.62, 111.71, 112.00, 112.09, 112.21, 112.44, 112.54, 112.67, 112.87

Alternative scenario

RecommendationsSELL STOP
Entry Point111.60
Take Profit111.00
Stop Loss111.90
Support levels111.37, 111.62, 111.71, 112.00, 112.09, 112.21, 112.44, 112.54, 112.67, 112.87
USD/JPY: general review

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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