Technical data of the currency pair:

Previous closing: 108.11;
Daily range: 106.99-108.20;
Opening: 108.11;
52 - week range: 106.99-125.86;
Annual revenue: -9.46%; 
Change in % for the previous day: -3.03;

Analytical review:

  • In the last three trading session the currency traded in the range of 110.85 – 111.75. During yesterday’s session the Yen has significantly strengthened against the USD The price of the Yen has grown by 3.03%;
  • According to Ministry of Economy, Trade and Industry of Japan, growth of industrial production in the country amounted to 3.6% against the decline of 5.2% a month earlier and the forecast of 2.9%;
  • At the meeting of the Bank of Japan yesterday monetary policy was left unchanged, new incentive measures have not been adopted either;
  • US economic statistics released yesterday showed that GDP in the country rose by 0.5% against 1.4 in Q4 2015. The forecast was 0.7%;
  • “Commitments of Traders” shows ambiguous picture. Large investors have increased the number of long positions by 1468 contracts. Short positions have been increased by 8607 contracts.

Summary:

  • Weak US statistics, stability of the Japanese monetary policy and increased volatility in the financial market put strong pressure on the currency pair;
  • According to “COT” large speculators do not have common opinion about the Yen;
  • Therefore, it is likely that the Yen will grow against the USD. It is recommended to open short positions.

Trading tips for the currency pair USD/JPY

Key levels:
Support level: 105.50.
Resistance levels: 107.85, 108.85 and 109.70.

Medium-term trading, Н4
At the moment the currency has broken down and consolidated below support level of 107.85. If the price maintains demand zone of 107.30-107.85 and in case of the respective confirmation (such as Price Action pattern), we recommend to open short positions. Risk per trade is not more than 2% of the capital. Stop order can be placed slightly above the signal line. Take profit can be placed in parts at the levels of 106.30, 105.60 and 105.10 with the use of trailing stops.

Analytical review of the currency pair USD/JPY of 29.04.2016
Medium-term trading, Н4

Short-term trading, М15: At the moment the currency is traded near support level of 107.05. After breaking out and consolidating of the price below this level it is recommended to open short positions. Risk per trade is not more than 3% of capital. Stop order can be placed slightly above the signal line. Take profit can be placed in parts at the levels of 106.50, 106.10 and 105.70 with the use of trailing stop.

Analytical review of the currency pair USD/JPY of 29.04.2016
Short-term trading, М15




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