Current trend
Last week, the Japanese Yen gained support when the Bank of Japan decided to keep monetary policy unchanged. BoJ Governor gave a generally favorable outlook of the country’s economy.
At present, the USD/ JPY pair still tends to continue declining.
However, Japan is undergoing a period of a weak growth in Industrial Production, Services PMI and a decline in exports. Moreover, inflation will remain low in the medium term. Thus, BoJ might have to consider further changes to monetary policy.
Support and resistance
A decline in the pair has stopped at the support level of 120.55 (EMA200 on the daily chart and 61.8% Fibonacci) which is also the lower border of an ascending channel on the daily chart. While the price remains above this level, it tends to grow in the medium term.
The breakout of the resistance levels of 121.35, 121.50 (50.0% Fibonacci), 122.00 (EMA200 and EMA144 on the 4-hour chart), 122.50 (38.2% Fibonacci) would allow the price to strengthen to 123.70 (23.6% Fibonacci), 124.50 and 125.00 (upper border of the ascending channel on the daily chart).
On the 4-hour, daily and weekly charts, OsMA histogram is near the zero line. Amid a decline in trading activity due to the upcoming holidays, the pair is likely to remain near the level of 121.00.
Support levels: 120.55, 120.00, 118.85.
Resistance levels: 121.35, 121.50, 122.00, 122.50, 123.00, 123.70.
Trading tips
Long positions can be opened from the level of 121.60 with targets at 121.90, 122.00, 122.50, 123.00, 123.50, 123.70, 124.00, 124.50, 125.00 and stop-loss at 121.20.
Short positions can be opened from the level of 120.35 with targets at 120.00, 118.85, 118.00 and stop-loss at 120.75.
Last week, the Japanese Yen gained support when the Bank of Japan decided to keep monetary policy unchanged. BoJ Governor gave a generally favorable outlook of the country’s economy.
At present, the USD/ JPY pair still tends to continue declining.
However, Japan is undergoing a period of a weak growth in Industrial Production, Services PMI and a decline in exports. Moreover, inflation will remain low in the medium term. Thus, BoJ might have to consider further changes to monetary policy.
Support and resistance
A decline in the pair has stopped at the support level of 120.55 (EMA200 on the daily chart and 61.8% Fibonacci) which is also the lower border of an ascending channel on the daily chart. While the price remains above this level, it tends to grow in the medium term.
The breakout of the resistance levels of 121.35, 121.50 (50.0% Fibonacci), 122.00 (EMA200 and EMA144 on the 4-hour chart), 122.50 (38.2% Fibonacci) would allow the price to strengthen to 123.70 (23.6% Fibonacci), 124.50 and 125.00 (upper border of the ascending channel on the daily chart).
On the 4-hour, daily and weekly charts, OsMA histogram is near the zero line. Amid a decline in trading activity due to the upcoming holidays, the pair is likely to remain near the level of 121.00.
Support levels: 120.55, 120.00, 118.85.
Resistance levels: 121.35, 121.50, 122.00, 122.50, 123.00, 123.70.
Trading tips
Long positions can be opened from the level of 121.60 with targets at 121.90, 122.00, 122.50, 123.00, 123.50, 123.70, 124.00, 124.50, 125.00 and stop-loss at 121.20.
Short positions can be opened from the level of 120.35 with targets at 120.00, 118.85, 118.00 and stop-loss at 120.75.