Current trend

At the end of October, the USD/JPY pair was corrected to the lower border of the wide upward channel at the level of 111.40, rebounded from it strayed from it and began to grow. Until the end of the month, the instrument regained half of the monthly losses, and, keeping the momentum, it is moving only upwards in November. Now the price has reached 114.00 and is tending toward local highs at the levels of 114.30, 114.50. The main catalysts for the resumption of growth were the increased demand for USD and the positive US statistics of the two recent weeks.

Today, special attention should be paid to the publication of key US indices.

Support and resistance

In the short term, the upward impulse will develop to the local highs. Further, there are strong resistance levels that the pair may break only in case of a release of strong American statistics and an increase in demand for USD. In this case, the instrument can reach historic highs at 118.65, 121.90, 124.40, 125.75. An alternative scenario is a sideways consolidation within the channel of 114.50–112.00.

Technical indicators confirm the forecast of further growth: the volumes of MACD long positions are increasing, and Bollinger bands are directed upwards.

Resistance levels: 114.00, 114.50, 114.80, 115.00, 115.50, 116.30.

Support levels: 113.70, 113.15, 113.00, 112.40, 111.75, 111.40, 110.85.

Trading tips

Long positions can be opened from the current level, pending long positions can be opened from the levels of 112.85, 112.00 with targets at 114.50, 115.50 and stop loss 111.70.

US Dollar vs Japanese Yen

BuySellSpread
113.304113.27826

Scenario

TimeframeWeekly
RecommendationsBUY
Entry Point113.83
Take Profit114.50, 115.50
Stop Loss113.20
Support levels110.85, 111.75, 112.40, 113.00, 113.15, 113.70, 114.00, 114.50, 114.80, 115.00, 115.50, 116.30

Alternative scenario

RecommendationsBUY LIMIT
Entry Point112.85, 112.00
Take Profit114.50, 115.50
Stop Loss111.70
Support levels110.85, 111.75, 112.40, 113.00, 113.15, 113.70, 114.00, 114.50, 114.80, 115.00, 115.50, 116.30
USD/JPY: upward trend

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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