Current trend
From the end of the previous week the Japanese currency is going down against the US dollar. The Bank of Japan decision to keep interest rate at the minimal level and unexpectedly high trade deficit were the main causes of the JPY fall. The growth of the USD/JPY pair is also affected by the strengthening of the USD after each of FRS officials’ commentary.
Today the Existing Home Sales data publication is due at 16:00 (GMT+2) in the USA (the fall of the index by 20K is expected), and the EIA Crude Oil Stocks change at 16:30 (GMT+2): the decreasing is expected, which can support the USD.
The strengthening of the pair is expected in the nearest two days.
Support and resistance
Yesterday the pair was consolidating within the narrow zone not wider than 10 points around the level of 111.50. The breaking of the level will let the price to move to the next key resistance level of 112.50, where two upper borders of two channels coincide: the violet year channel on the D1 and black 6-months on the D1.
Support levels: 110.50, 109.00, 108.10.
Resistance levels: 111.50, 112.50, 114.40.
Trading scenario
Open long positions at the current price with the target at 111.50, 112.50, stop loss is at 110.85.
Sell the pair at the level of 110.50 with the target at 109.00 and stop loss at 111.30.
From the end of the previous week the Japanese currency is going down against the US dollar. The Bank of Japan decision to keep interest rate at the minimal level and unexpectedly high trade deficit were the main causes of the JPY fall. The growth of the USD/JPY pair is also affected by the strengthening of the USD after each of FRS officials’ commentary.
Today the Existing Home Sales data publication is due at 16:00 (GMT+2) in the USA (the fall of the index by 20K is expected), and the EIA Crude Oil Stocks change at 16:30 (GMT+2): the decreasing is expected, which can support the USD.
The strengthening of the pair is expected in the nearest two days.
Support and resistance
Yesterday the pair was consolidating within the narrow zone not wider than 10 points around the level of 111.50. The breaking of the level will let the price to move to the next key resistance level of 112.50, where two upper borders of two channels coincide: the violet year channel on the D1 and black 6-months on the D1.
Support levels: 110.50, 109.00, 108.10.
Resistance levels: 111.50, 112.50, 114.40.
Trading scenario
Open long positions at the current price with the target at 111.50, 112.50, stop loss is at 110.85.
Sell the pair at the level of 110.50 with the target at 109.00 and stop loss at 111.30.