USD/JPY: analysis and forecast

January 12, 2015

Current trend

The current trading session started with a jerk when the USD/JPY tried to consolidate above a level of 119.00. But then the pair slumped after the opening of the American session. Today, the pair managed to drop below a level of 118.00, but promptly moved back and is trading at about 118.40.

The economic calendar suggests that the day will be calm and the pair is likely to be trading within a range of 18.00-119.00.  The US retail sales index and consumer price index will be published on Thursday and Friday, respectively. The forecasts for both indexes are quite gloomy, which can drop the pair below a level of 118.00.

From technical point of view, the pair has a good chance of growing.  Stochastic is in the oversold zone and produces a strong signal to buy. MACD is in the negative zone, but if the volumes start decreasing and the signal line reaches beyond the limits of the histogram and moves upwards, there will be a signal to buy.

Support and resistance

The nearest resistance level is at 118.65 coinciding with 50% Fibonacci retracement.

The following levels: 119.00, 119.30, 119.75. 

Support levels are at 118.05 and 117.75.

Trading tips

Buy above 118.65 and 119.30 with a target at 119.75. Short positions should be opened in case the price consolidates below the level of 119.70 with the nearest target at 117.90.

Publication source
LiteForex information  LiteForex reviews

October 25, 2016
US flash Markit PMI jumped 1.7 points to 53.2 in October
Asian stock markets are mostly down, as the positive confidence indicators out of Europe and the U.S. yesterday were overshadowed by weak GDP numbers from South Korea, which weighed on most markets. Topix and Nikkei outperformed, with a weaker Yen underpinning exporters...
October 25, 2016
Fed speech, flash PMI push dollar to a fresh 8-month high
Marking the final day of Fed speeches ahead of the one-week blackout period starting today, FOMC voting member, Bullard said that December was most likely for a rate hike...
October 25, 2016
M&A activities drove equities, focus shifts to earnings
Equity markets began the week on a positive note with M&A activities, positive earnings, and better than expected manufacturing data from the Eurozone and U.S. all boosting appetite to risk... Rating
FXCM Rating
OctaFX Rating
FIBO Group Rating
Vantage FX Rating
Larson&Holz IT Ltd Rating

Anyoption Rating
Binary Brokerz Rating
24option Rating
Empire Option Rating
Porter Finance Rating
OptionsXO Rating