USD/JPY: analysis and forecast

10 September, 2014

Current trend

The currency pair USD/JPY continues to rise to new peaks. New growth surge was caused by the strengthening in the USD, which looks steady and reliable against its counterparts. Despite negative non-farm payroll, the USD remains the most attractive instrument for investors.  

Today, the pair has reached the new highs at the level of 106.79. Last time when such prices were observed in the market was in Autumn 2008. It is very likely that the rise will continue. In addition, the Bank of Japan may increase incentive measures to promote economic recovery in the country. Among interesting data, which will be released this week is the US retail sales report on Friday. Forecast for this index is optimistic.

Support and resistance

From the prospective of technical indicators the pair is not too much oversold and has a potential to grow. Resistance levels are 106.80 and 107.00. The latter one is the main target of the “bulls” and breakdown of this level will give a chance to reach new peaks. Support levels: 106.75, 106.00, 105.70 and 105.30.

Trading tips

The most feasible scenario is further rise in the pair. Long positions can be opened after consolidation of the price above the level of 107.00. In case of correction it makes sense to place limit buy orders at the levels of 106.00 and 105.70.

Presented by LiteForex

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