USD/JPY: bearish trend develops

28 October, 2015

Current trend

On Tuesday, the American currency continued declining, being pushed down again by negative macroeconomic releases. Moreover, weak statistics lower the chances that the Fed would hike interest rates before the year is out.

Thus, on Monday, New Home Sales Change reported an 11.5% fall in September from a 5.2%growth in the previous month, while just a 0.4% decline was expected. On Tuesday, Consumer Confidence indicated a decline from 102.6 to 97.6 points against a positive forecast of 102.9 points.

Support and resistance

Bollinger Bands indicator on the daily chart is directed horizontally. The price range is trying to fix within the current borders. MACD is turning down and forming a sell signal. Stochastic continues declining.

The indicators recommend short positions in the short term.

Support levels: 120.34, 120.00, 119.62 (22 October low), 119.39, 119.05, 118.67, 118.24, 118.00.

Resistance levels: 120.56 (6 October high), 121.00, 121.23, 121.48 (26 October high), 121.73 (28 August high), 122.00.

Trading tips

Long positions can be opened after the breakout of the level of 120.70 with targets at 121.40, 122.00 and stop-loss at 120.50. Validity - 1-3 days.

According to the indicators, a downward trend seems to be a likelier scenario. Thus, short positions can be opened after the breakdown of the level of 120.00 with targets at 119.60, 119.00, 118.40 and stop-loss at 120.30. Validity – 1-3 days.

Source   Presented by LiteForex
USDJPY Daily: Bulls gaining momentum6 Jul, 2020  

The USDJPY currency pair, on the D1 time-frame, was in a downward spiral until June 23 when a lower bottom was reached at 106.071. Buyers found...

USDJPY Daily: Bears dominating the market22 Jun, 2020  

The USDJPY currency pair, on the D1 time frame was in an uptrend until June 5 when a higher top was reached at 109.848. Supply overwhelmed demand and...

Yen underwhelmed as BOJ jumps on unlimited bandwagon27 Apr, 2020  

The Japanese Yen initially breached the 107.3 level against the US Dollar, only to pare gains, after the Bank of Japan pledged unlimited buying of government bonds...

Buyers might be gaining the upper hand30 Mar, 2020  

The USDJPY currency pair, on the D1 time-frame, made a brief descending interchange until March 9 when a lower bottom was recorded at 101.178...

Japanese yen flies into the abyss19 Feb, 2020  

Macro data published this week of the Japanese economy finally hit the Japanese yen: at the beginning of the week it was a report on GDP, today in terms...

Yen Gains as Shinzo Abe Launches $121 Billion Stimulus6 Dec, 2019  

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 framed29 Nov, 2019  

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 tops16 Oct, 2019  

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 muscles3 Oct, 2019  

Everyone wanted a piece of the Japanese Yen on Wednesday after disappointing ADP payroll data from the United States and gloomy outlook on trade...