Current trend
Yesterday the Fed announced its decision on the interest rate. As expected, the value of 1.25% remained unchanged, but the cautious tone of the follow-up statement disappointed the investors that started to aggressively sell USD. As a result, the pair USD/JPY lost 100 points. At the same time, the US regulator still considers it possible that interest rates may be increased until the end of the year. Moreover, the Fed stated it intended to start reducing the volume of aggregated assets in September.
The key event of today will be the release of data on jobless claims by the US Department of Labor. The expected growth of initial jobless claims from 233K to 241K will lead to further fall of the pair.
Support and resistance
On the D1 chart the instrument is trading around the lower border of Bollinger Bands. The indicator is turning sideways, while the price range has widened indicating the continuation of the current trend. MACD histogram is in the negative zone with its volumes reducing, and the signal line is directed downwards which is a signal for opening sell positions. Stochastic does not give clear signal for entering the market.
Support levels: 110.70, 110.35, 109.90, 109.40.
Resistance levels: 111.70, 112.15, 112.55, 112.95, 113.50.
Trading tips
Short positions may be opened from the current level with targets at 110.50, 110.35 and stop-loss at 111.40. The period of implementation is 1-3 days.
Long positions may be opened from the level of 111.75 with targets at 112.35 and stop-loss at 111.50. The period of implementation is 1-3 days.
Yesterday the Fed announced its decision on the interest rate. As expected, the value of 1.25% remained unchanged, but the cautious tone of the follow-up statement disappointed the investors that started to aggressively sell USD. As a result, the pair USD/JPY lost 100 points. At the same time, the US regulator still considers it possible that interest rates may be increased until the end of the year. Moreover, the Fed stated it intended to start reducing the volume of aggregated assets in September.
The key event of today will be the release of data on jobless claims by the US Department of Labor. The expected growth of initial jobless claims from 233K to 241K will lead to further fall of the pair.
Support and resistance
On the D1 chart the instrument is trading around the lower border of Bollinger Bands. The indicator is turning sideways, while the price range has widened indicating the continuation of the current trend. MACD histogram is in the negative zone with its volumes reducing, and the signal line is directed downwards which is a signal for opening sell positions. Stochastic does not give clear signal for entering the market.
Support levels: 110.70, 110.35, 109.90, 109.40.
Resistance levels: 111.70, 112.15, 112.55, 112.95, 113.50.
Trading tips
Short positions may be opened from the current level with targets at 110.50, 110.35 and stop-loss at 111.40. The period of implementation is 1-3 days.
Long positions may be opened from the level of 111.75 with targets at 112.35 and stop-loss at 111.50. The period of implementation is 1-3 days.