USD/JPY: correction will not last long

26 August, 2014

Current trend

On Monday the pair USD/JPY has hit eight-month highs at 104.27. The market is still under pressure of Janet Yellen’s speech. Head of US FRS mentioned, that if positive dynamics of US labour market remains the same, interest rates can be raised sooner than expected.

Today investors are waiting for the US fundamental stats: Durable Goods Orders and Consumer Confidence index. The latter can decline to the level of 89 point, but it is still pretty high comparing to the 2008 maximum of 90 points. Durable Goods Orders indicator can increase by 7.5% and support Dollar.

Support and resistance

The pair is being corrected to the lower MA of Bollinger Bands (103.65). This point could be a pivot one and the price will go up to the levels of 104.00, 104.27 and 104.50. Technical indicators predict downward movement. Bollinger Bands are directed sideways, MACD histogram is in positive zone, its volumes are decreasing. Stochastic lines don’t give clear signals.

Trading tips

Short-term sell positions can be opened at current price with target at 103.65. Pending orders to buy can be placed at the same level with take-profit around 104.50. 

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