Current trend

Last week the pair managed to break down the lower border of a narrow sideways range where it was consolidating for a while and significantly fell.

The pair was pressured by poor macroeconomic statistics from the US on the labour market and key indices. In addition, strong data from Japan added to pressure on the pair. Machinery Orders came out substantially better than forecasts at 10.7%.

This week attention needs to be paid to US data on the construction sector, Industrial Production and labour market in the US and to decisions by the Fed and the Bank on Japan on interest rates. Due to expectations of monetary policy tightening in the US and policy easing in Japan, the pair will be receiving support.

Support and resistance

The likeliest scenario is the pair’s growth towards the levels of 123.00, 123.75.

Support levels: 120.75, 120.40, 120.00, 119.80, 119.40, 119.00, 118.60, 118.00, 116.20.

Resistance levels: 121.30, 121.80, 122.10, 122.50, 123.00, 123.75, 124.10, 125.50, 125.70.

Trading tips

Long positions can be opened from current levels with the target at 123.70 and stop-loss at 119.80.

USD/JPY: growth likely

Materials published on this page are provided by LiteForex for informational purposes only and should not be construed as investment advice or advice for the purposes of 2004/39/EC Directive. In addition, these materials have not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on the further distribution of investment research.

Follow us in social networks!
Live Chat
Leave feedback