USD/JPY: Yen continues falling amid strong macroeconomic statistics

28 January, 2016

Current trend

Yesterday the pair grew amid strong macroeconomic statistics from the US. Data on New Home Sales for December showed a growth to 544 thousands that was substantially better than forecasts.

At the same time, as was expected the US Fed left the interest rate unchanged at its current 0.5%. Members made the decision unanimously. In the Policy Statement, it was noted that the regulator would continue monitoring the situation on the world markets. However, despite some difficulties the rate hike in March is still possible. 

Support and resistance

Bollinger Bands on the daily chart is turning up while the price range is widening. MACD is growing and giving a quite strong buy signal. Stochastic is in the overbought zone and trying to turn down.

The indicators recommend waiting for clearer trading signals.

Support levels: 118.67 (local low), 118.35, 118.00, 117.32, 117.00, 116.50, 116.00 (20 January low).

Resistance levels: 119.06 (local high), 119.69 (5 January high), 120.00 (psychologically important level), 120.56, 121.00.                                                      

Trading tips

Long positions can be opened after the breakout of the levels of 118.90, 119.20 (with the appropriate indicators signals) with the target at 120.00 and stop-loss at 118.60. Validity – 2-3 days.

Short positions can be opened after the breakdown of the level of 118.00 with targets at 117.50, 116.80 and stop-loss at 118.30. Validity – 2-3 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