USD/JPY: pair strengthened

8 January, 2016

Current trend

Since the beginning of today’s session, the pair significantly strengthened recovering some of the losses of this week. Earlier, the pair was pressured by poor macroeconomic data from China, growing tensions in the Middle East and the FOMC Minutes that expressed regulator’s concerns regarding inflation growth in the US. At the same time, today the pair was supported by poor macroeconomic data from Japan. Labour Cash Earnings for November showed no growth while experts expected a 0.7% growth, and the Leading Economic Index fell from 104.2 to 103.9 points.

Today attention needs to be paid to the labour market data from the US.

Support and resistance

Bollinger Bands on the daily chart is moving down while the price range remains wide. At the same time, the indicator formed a signal for correctional growth. MACD is trying to turn up while keeping a sell signal. Stochastic is in the oversold zone and also trying to turn up, indicating a possibility of an upward correction.

The indicators recommend waiting for clearer trading signals.

Support levels: 118.00 (local low), 117.32 (yesterday low), 117.00, 116.19 (24 August low).

Resistance levels: 118.24 (local high), 118.67, 119.05, 119.39, 119.69 (5 January high), 120.00 (psychologically important level), 120.16, 120.56.

Trading tips

Long positions can be opened after the breakout of the level of 118.67 with targets at 119.50, 120.00 and stop-loss at 118.00. Validity – 2-3 days.

Short positions can be opened after the breakdown of the level of 118.00 with the target at 117.00 and stop-loss at 118.70. Validity – 2-4 days.


Source link   Presented by LiteForex

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...


USD/JPY keeps showing a negative trend

Since the beginning of the week, USD/JPY fell by 100 points. The currency pair is close to the round 109.000 with 109.550 acting as the closest...

USD/JPY started to grow after a long descent

Yesterday the quotes grew by 100 points and updated the local maximums. Right now the safe haven currency is consolidating and has good prospects...

USD/JPY in an aggressive sell-off

During the trading yesterday, the yen grew by more than 1% against the USD. The quotes reached 111.000 and can descend further. The local resistance...

  


Share it on:   or