USD/JPY: Yen started growing

10 December, 2015

Current trend

On Wednesday, the USD/JPY pair fell and reached new local lows. The US Dollar is unlikely to gain back most of its losses at the end of the week.

Uncertainty around future monetary policy in the US is growing. Though most analysts expect a rate hike at the upcoming Fed meeting, some traders are taking profits on the USD long positions since they suggest such a decision has already been priced into the markets.

At the same time, the Japanese currency is being supported by favorable macroeconomic statistics. On Tuesday, the JPY strengthened amid the publication of GDP data for the third quarter. The indicator grew by 1.0%, notably above the forecast of 0.1%. Furthermore, on Wednesday, the currency gained support from Core Machinery Orders statistics for October.

Support and resistance

Bollinger Bands indicator on the daily chart is turning down. The price range is widening, but the price remains out of its borders. MACD keeps its strong downward trend. Stochastic is approaching the border of the oversold zone.

It is recommended to wait for clearer trading signals.

Support levels: 121.00 (near 9 December low), 120.56, 120.34, 120.00 (strong psychological level near 28 October low), 119.62, 119.39.

Resistance levels: 121.48, 122.00, 122.22 (used to be the lower border of a flat channel), 122.60, 122.93, 123.25, 122.66 (2 December high).

Trading tips

Long positions can be opened if the price turns up and overcomes the level of 122.00 with targets at 122.65, 123.00 and stop-loss at 121.70. Validity – 2-4 days.

Short positions can be opened after the breakdown of the level of 121.30 with the target at 120.00 and stop-loss at 121.60. Validity – 2-3 days.


Source   Presented by LiteForex
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...

Yen shunned as risk appetite improves11 Sep, 2019  

The Japanese Yen is entangled in losing battle against every single G10 currency today as risk appetite improves on trade optimism and...