USD/JPY: pair strengthening

17 November, 2015

Current trend

Yesterday the USD/JPY pair significantly strengthened. The pair was supported by poor macroeconomic statistics from Japan that came out worse than already negative forecasts. According to preliminary data, the Japanese GDP for the third quarter fell by 0.8% against forecasted decline of 0.2%.

During the week, attention needs to be paid to publications from Japan where the BoJ Interest Rate Decision and October data on imports and exports are due.

Support and resistance

Bollinger Bands on the daily chart is moving up while the price range is widening. MACD is growing and giving a buy signal. Stochastic is near the overbought zone and turning up again.

The indicators recommend considering long positions.

Support levels: 123.60 (local low), 122.60, 122.22 (16 November low), 122.00, 121.48, 121.00, 120.34, 120.00 (psychologically important level), 119.62.

Resistance levels: 123.60 (9 November high), 124.00, 124.57 (middle of August high), 125.00, 125.40.

Trading tips

Long positions can be opened after the breakout of the level of 123.55 (with the appropriate indicators signals) with targets at 124.40, 125.00 and stop-loss at 123.15. Validity – 2-3 days.

Short positions can be opened after the breakdown of the level of 122.90 with the target at 122.40 and stop-loss at 123.20. Validity – 1-2 days.


Source   Presented by LiteForex
Yen Gains as Shinzo Abe Launches $121 Billion Stimulus

The Japanese yen strengthened slightly against the EUR as the markets reflected on the new stimulus package by Shinzo Abe. The $121 billion stimulus...

Currency Point: USDJPY multi-time framed

There are further signs in currencies that risk trading is facing fatigue and there is growing signs a short period...

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...