On Thursday the pair went up reaching six-month highs at the level of 102.37. Today the Yen continued to lose positions against the American dollar. The rise in the pair USD/JPY is supported by the talk that the Bank of Japan is going to soften monetary policy. Another fact that put pressure on the Japanese currency is the increase of volume of foreign bonds redemption by residents of Japan. Last week the amount reached 1405.6 billion yen, which was by 351.5 billion yen higher than the previous value.
Support and resistance
The nearest resistance level on the daily chart is 102.58 (highs of 24 May). Next resistance line is psychologically important level of 103.00. The target of the “bulls” is the local highs of 103.73. Support level is the local highs of 101.93 and 101.14.
MACD histogram is in the positive zone above the signal line indicating strong uptrend. Stochastic is in the overbought zone. Breakdown of the level of 102.58 will open the way to the level of 103.73 for the “bulls’. It is advisable to place sell orders in case of decline in price below 101.93 with the target of 101.14.
Analyst of LiteForex Group of CompaniesPublication source