USD/JPY: general analysis for February 04, 2014

4 February, 2014

Current trend 

Following the lows at the level of 105.45, the Japanese Yen started to strengthen against the American dollar. The USD has lost about 500 points and the USD/JPY rate is approaching psychologically important resistance level of 100.0. If this level is broken down, the pair will soar up to the levels of 98.00 and 96.00.

According to economists there are no reasons, which could have caused the fall in the USD against the Yen and market is experiencing minor correction. Moreover, monetary policies in these countries are completely opposite: US fed is reducing quantitative easing programs, while Central Bank of Japan, on the contrary, injects cheap liquidity in order to overcome inflation.

It is worth noting that first positive results are evident: unemployment rate in Japan fell to 3.7%, number of new jobs increased by 2.8%. Sales of new cars have also risen by 27.5% versus previous year. However, due to the rise of sales tax from 5% to 8% car dealers think that this year’s sales are going to fall. 

Support and resistance

The nearest support level is psychologically important level of 100.00. Support level is the bottom limit of the trading channel of 101.95.

Trading tips 

Short positions are recommended after breakdown of the level of 100.00 with stop-loss at 100.50 and a target of 98.20.


Dmitry Agurbash

Analysts of LiteForex Group of Companies

Source link   Presented by LiteForex

USD/JPY eases from 2-month tops

Fading safe-haven demand continued weighing on the JPY and provided a goodish lift on Tuesday. The ongoing slide in the US bond yields...

Yen flexes bullish muscles

Everyone wanted a piece of the Japanese Yen on Wednesday after disappointing ADP payroll data from the United States and gloomy outlook on trade...

Yen shunned as risk appetite improves

The Japanese Yen is entangled in losing battle against every single G10 currency today as risk appetite improves on trade optimism and...

USD/JPY recovers to 107 area

10-year US T-bond yield extends slide, drops below 2%. US Dollar Index stays calm near the 96 mark. Fed's Williams & Bostic, FOMC Chairman Powell...

Oscillates in a familiar trading range

The USD/JPY pair lacked any firm directional bias and seesawed between tepid gains/minor losses through the early European session on...

USD/JPY climbs to 1-week tops

Improving risk sentiment dents the JPY's relative safe-haven status. The USD remains supported by a solid rebound in the US bond yields. Focus now shifts...

USD/JPY backs away from highs

US Dollar Index retreats toward 97 area. Nikkei Manufacturing PMI in Japan improves slightly in March. Coming up: Retail sales and manufacturing...

USDJPY Jumps As UK Rejects No-Deal Brexit

The UK parliament rejected a no-deal Brexit on Thursday evening. This leads to speculation that the UK might formally ask the EU for an extension...

On Wednesday Yen slips in Asia

On Wednesday, the Japanese yen headed south versus its major peers because investor risk appetite improved during Asia trade, although worries...


Share it on:   or