Current trend
After the significant growth on Friday the USD/JPY pair is trading within the narrow range. The trend is still downward; the leap in the end of the last week was short termed and was caused by the correction of the price rather than the beginning of the reversal. On Monday the volatility was low due to the lack of macroeconomic releases, as traders were waiting for the US Producer Price Index publication and the Initial Jobless Claims data on Thursday.
Support and resistance
On the 4-hour chart the pair was corrected to the middle line of Bollinger Bands and is trading around the support level of 110.50. MACD histogram is around the zero line, its volumes are minimal, the signal line is ready to cross the zero line upwards, and in this case the buy signal will be received.
Support levels: 110.50, 110.00.
Resistance levels: 111.00, 111.20, 111.50.
Trading tips
Short positions can be opened at the level of 110.50 with the target at 110.00 and stop loss at 110.80.
Long positions can be opened at the level of 111.00 with the target at 111.50 and stop loss at 110.70.
Implementation period: 2-3 days.
After the significant growth on Friday the USD/JPY pair is trading within the narrow range. The trend is still downward; the leap in the end of the last week was short termed and was caused by the correction of the price rather than the beginning of the reversal. On Monday the volatility was low due to the lack of macroeconomic releases, as traders were waiting for the US Producer Price Index publication and the Initial Jobless Claims data on Thursday.
Support and resistance
On the 4-hour chart the pair was corrected to the middle line of Bollinger Bands and is trading around the support level of 110.50. MACD histogram is around the zero line, its volumes are minimal, the signal line is ready to cross the zero line upwards, and in this case the buy signal will be received.
Support levels: 110.50, 110.00.
Resistance levels: 111.00, 111.20, 111.50.
Trading tips
Short positions can be opened at the level of 110.50 with the target at 110.00 and stop loss at 110.80.
Long positions can be opened at the level of 111.00 with the target at 111.50 and stop loss at 110.70.
Implementation period: 2-3 days.