Technical data of the currency pair:
Previous closing: 113.45; Daily range: 113.23-113.73;
52-week range: 110.65-125.86;
Annual profit: -4.85%;
Change in % for the previous day: -0.09.
- Since mid-February the currency is traded in the range of 111.00-114.10. Last week the currency pair managed to maintain the lower limit of the range at the level of 111.00, due to which the Yen has lost over 200 points in price.
- Yesterday, important US statistics was released, which showed that according to Ministry of Trade core index of personal expenditure amounted to 0.1% against the forecast of 0.2%.
- Consumer income for February increased by 0.2%, which was above the forecast of 0.1%. Spending has increased by 11 billion USD, which was up to market expectations.
- «Commitments of Traders» showed ambiguous picture. Large speculators have increased the number of long positions for 2739 contracts. Short positions has been increased by 5580 contracts.
- US economic statistics, which will be released this week, can affect movement in the currency pair. On Friday, April 1, non-farm payrolls will become known.
- Poor US economic data has decreased expectations of the monetary policy tightening by the US fed. Ambiguous situation in the world economy and high volatility in the financial markets put pressure on the currency pair. According to “COT” large investors do not have common opinion about the Yen.
- Market movement is mixed at the moment. We recommend to enter the market from the key support and resistance levels.
Trading tips for the currency pair USD/JPY
Long-term trading: prior to the release of non-farm payrolls on Friday April 1 апреля, we do not expect significant changes in the exchange rate of Japanese Yen. At the moment we recommend to refrain from long-term trades on the currency pair USD/JPY. It is advisable to enter the market after the release of the US statistics on Friday and re-testing of the key support and resistance levels and in case of the respective confirmations (such as the pattern Price Action).
Short-term trading: at the moment on the chart with the timeframe 15М the Yen is traded in the range of 113.25-113.65. We recommend to enter the market after breaking out and testing of this zone. Positions shall be opened at the signal line and the nearest support/resistance levels. Risk per trade is not more than 3% of capital. Stop order can be placed slightly above/below the signal line. Take profit is recommended in parts of 50%, 30% and 20% with the use of trailing stop.