USD/JPY showing a negative trend

20 December, 2018

  • Prev Open: 112.497
  • Open: 112.406
  • % chg. over the last day: -0.11
  • Day's range: 111.742 – 112.604
  • 52 wk range: 104.56 – 114.56

The USD/JPY currency pair keeps showing a negative trend. The JPY strengthened against the USD by more than 150 points. The USD/JPY quotes are testing the local support at 111.750 with 112.250 being mirror support. The trading instrument can descend further.

The Bank of Japan, as was expected, kept the fundamental parameters of the monetary policy. The Central Bank also informs that the country`s economy is showing a stable growth.

The indicators point toward the power of the sellers, the price fixed below 50 MA and 200 MA.

The MACD histogram is in the negative zone and below the signal line, which gives a strong signal toward selling USD/JPY.

The Stochastic Oscillator is in the oversold zone, the %K line crosses the %D line. There are no signals at the moment.

Trading recommendations

  • Support levels: 111.750, 111.400
  • Resistance levels: 112.100, 112.250, 112.600
  • If the price fixes below the 111.750 support level, expect further descend of the USD/JPY quotes. The movement will tend toward 111.400-11.200.
  • Alternatively, the quotes can recover 112.250-112.400.

Source   Presented by JustForex
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