Current trend

Today the pair significantly fell amid another decline of the Chinese stock market that raised interest in safe-haven assets, such as the Yen.

In addition, the pair is pressured by the Bank of Japan December decision to expand its economy stimulation program, strong macroeconomic statistics from Japan and growing yields of the Japanese government bonds.

Today attention needs to be paid to data on Retail Sales, Industrial Production and the Producer Price Index in the US. According to forecasts, indices will come out with a decline that could further pressure the pair.

Support and resistance

The pair is moving along a descending channel with the lower border at the level of 116.30.

In the short-term, the price is likely to fall to the lower border of the channel from where it will reverse up towards the levels of 121.30, 121.85, 122.10.

Support levels: 117.00, 116.50, 116.30, 115.75, 115.30, 115.00.

Resistance levels: 118.00, 118.60, 119.00, 119.40, 119.80, 120.40, 120.75, 121.30, 121.75, 122.10.

Trading tips

Long positions can be opened from current levels and from 116.30 with targets at 121.30, 121.75 and stop-loss at 116.00.

USD/JPY: in descending channel


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.

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