This Thursday the pair USD/JPY has hit the highs at 103.90. Weakening of the Yen was determined by US positive Retail Sales stats, the numbers exceeded the forecasts and reached the level of 0.7%. Dollar is also supported by the possibility of QE3 program curtailment, which may be announced at FOMC meeting next week. Today the pair is being corrected due to the increase of Japanese Industrial Production index. However, the rise of the Yen won’t be long, Japanese economy still has got a lot of problems.
Support and resistance
We expect the pair to pull back down to the levels of 103.30 and 103.00 (middle MA of Bollinger Bands), and then return to rise to the new highs around 103.90. Bollinger bands show a divergence, confirming upward trend. MACD histogram is in positive zone, its volumes are also in divergence with the price chart. Stochastic lines have crossed in overbought zone and are directed downwards.
Short positions can be opened at current price with targets around 103.30. At the levels of 103.30 and 103.00 pending buy orders can be placed.
Analyst of LiteForex Group of CompaniesPublication source