Current trend

At the beginning of the week, the USD/JPY pair rebounded from the resistance level of 114.20 and began to decline. The main catalyst for the change in the short-term trend was the drop in demand for USD due to poor statistics on the major indices and the labor market. The nearest resistance levels of 114.00, 114.20, 114.50 are historically important: for more than a year, the instrument has been passing it with difficulties even if the growth rates of the Japanese economy decrease and the poor statistics release.

At the end of the current trading week a number of US key releases, which may affect the dynamics of the course, will be released. Today, special attention should be paid to data on Retail Sales, key indices and speeches of representatives of the US Federal Reserve, tomorrow the data on Industrial Production are worth noting.

Support and resistance

USD is strong, which indicates a high probability of further growth of the pair from the current level to the local maximum of 114.50, with the prospect of growth to the level of 115.50. An alternative would be a decline to the level of 112.00 and further growth from it.

Technically, the pair stays within the upward range, the indicators confirm the forecast of further growth: MACD keeps high volumes of long positions, Bollinger bands are directed upwards.

Resistance levels: 113.70, 114.00, 114.20, 114.50, 115.00, 115.50, 116.30.

Support levels: 113.15, 113.00, 112.40, 112.00, 111.75, 111.40, 110.85, 110.50, 110.20.

Trading tips

It is relevant to increase long positions from the current level and open pending positions from the levels of 112.40, 112.00 with the target at 115.50 and stop loss at 111.40.

US Dollar vs Japanese Yen

BuySellSpread
113.448113.334114

Scenario

TimeframeWeekly
RecommendationsBUY
Entry Point113.46
Take Profit115.50
Stop Loss111.40
Support levels110.20, 110.50, 110.85, 111.40, 111.75, 112.00, 112.40, 113.00, 113.15, 113.70, 114.00, 114.20, 114.50, 115.00, 115.50, 116.30

Alternative scenario

RecommendationsBUY LIMIT
Entry Point112.40, 112.00
Take Profit115.50
Stop Loss111.40
Support levels110.20, 110.50, 110.85, 111.40, 111.75, 112.00, 112.40, 113.00, 113.15, 113.70, 114.00, 114.20, 114.50, 115.00, 115.50, 116.30
USD/JPY: to new heights

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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