Review and dynamics
The results of the latest polls in the UK give hope that the country may stay in the EU. Today’s statement made by the Japanese Finance Minister showed that the Bank of Japan was not going to carry out interventions to the financial market, and this fact helped the pair USD/JPY to go back to the recent lows at the level of 103.55. The price is moving to the nearest resistance levels of 104.85, 105.00 (ЕМА144) and 105.45 (ЕМА200 on the hourly chart).
The price of gold is going down today, as well as the price of the Japanese Yen.
However, the pair USD/JPY is still close to the annual and key support levels of 104.25 (ЕМА200) and 103.70 (ЕМА144 on the monthly chart), which is the level of the end of 2013.
Despite today’s growth, the pair USD/JPY is still under pressure from uncertainty about the outcome of the forthcoming referendum in the UK and due to instability in the world financial markets.
On 4-hour chart the indicators OsMA and Stochastic give signals for long positions; while the indicators on the daily, weekly and monthly charts are in favor of the sellers.
The pair USD/JPY is at the key support level. In the UK leaves the EU based on the results of the on 23 June, Euro, Pound and the pair USD/JPY will collapse.
If the UK stays in the EU, the pair USD/JPY will continue to rise up to resistance levels of 108.00 and 109.05 (Fibonacci 23.6% to the decline in the pair since June 2015 from the level of 125.65).
The pair USD/JPY can rise up to the level of 112.25 (Fibonacci 38.2%, ЕМА144 on the daily chart) and 113.45 (ЕМА200).
In case of the exit of the UK from the EU, the pair can drop to the level of 101.00 or below.
Support levels: 104.25, 104.00, 103.70, 103.55 and 103.00.
Resistance levels: 104.85, 105.00, 105.45, 106.50, 107.00, 108.00, 109.05, 110.00, 110.20 and 110.80.
Buy Stop: 104.65. Stop Loss: 104.25. Take-Profit: 105.00, 105.45, 105.70, 106.00, 106.50, 107.00, 108.00, 109.00, 110.00, 110.20, 110.80 and 112.25.
Sell Stop: 104.20. Stop Loss: 104.55. Take-Profit: 103.90, 103.60, 103.00, 102.00 and 101.00.
At the key support levels
In the descending channel