USD/JPY: weak Yen promotes economic growth in Japanese

November 26, 2013

Current trend

Currency pair USD/JPY has grown at the beginning of this week reaching six-month highs at the level of 101.91. The rise in the pair is supported by expectations of phasing out quantitative program in the USA. It is assumed that even in case of the decrease in the volume of American securities. Ultrasoft monetary policy in Japan will be continued. According to Japanese politicians, Abenomics bears fruit: weak Yen helps to regain competiveness of Japanese products; GDP in the country is growing and inflation rate is slowly increasing (although the target level of 2% has not been reached yet).

Support and resistance

Technical indicators show that on Monday the pair broke down the upper limit of the ascending channel and later went back inside its limit. The key level is the moving average line of “Bollinger bands” indicator (101.30). If this level is broken down downward correction can continue to the level of 100.70. However it is most likely that upward movement go on to the level of 101.80 and 102.30. Indicators give mixed signals. Bollinger bands are directed upward and demonstrate narrowing in advance of sharp changes in price. MACD histogram is in the positive zone, its volumes are decreasing. Stochastic lines are directed downward.

Trading tips

In the current situation it is advisable to open positions with profit taking at the level of 102.30. Short positions with the target of 100.70 can be opened if the price breaks down the level of  101.30.

Dmitriy Zolotov
Analyst of LiteForex Group of Companies

Publication source
LiteForex information  LiteForex reviews

February 17, 2017
Golds rally may falter
The gold price has racked up its 2nd straight day of gains today on the back of US dollar weakness and doubts over an interest rate hike next month from the US Federal Reserve...
February 16, 2017
Where is black gold heading?
The Euro is slowly going down and this is not brought on by the Eurozone situation. Instead, this is fueled by the U.S. Dollar. Yesterday, Janet Yellen gave a speech in the Senate Banking Committee emphasising the fact that it Is not quite right to use the wait-and-see stance regarding the interest rate hike...
February 14, 2017
Will France exit the euro?
The Euro has come under pressure late in the European session today, after analysts warned of the huge costs that France would face should they decide to ditch the European currency...

FOREX.com Rating
 FXTM Rating
FX Giants Rating
FIBO Group Rating
NPBFX Rating
Exness Rating

GTOptions Rating
Empire Option Rating
24option Rating
UKoptions Rating
OptionRally Rating
Binary Brokerz Rating