Current trend
The negative USA Trade Balance data and the negative inflation data from Japan, published on Friday, and the BoJ Monetary Policy Meeting Minutes, which proclaims that the inflation is insufficient for the tightening of the monetary policy, confirmed the reversal of the pair form the 6 month minimum. As a result the USD/JPY pair consolidated above the key level of 112.00.
Today the USA ADP Employment Change publication is expected (the forecast is negative), which can affect the USA FRS monetary policy decision and disappoint the market. There is The Constitution Day in Japan today, so due to the holyday there is no news from Japan.
The growth of the pair is expected today and tomorrow.
Support and resistance
Support levels: 111.20, 110.20, 108.90.
Resistance levels: 112.20, 113.20, 114.00.
Trading scenario
Open long positions at the current price with the target at 113.20 and stop loss at 111.10.
Sell the pair at the level of 111.20 with the target at 110.20 and stop loss at 112.00.
The negative USA Trade Balance data and the negative inflation data from Japan, published on Friday, and the BoJ Monetary Policy Meeting Minutes, which proclaims that the inflation is insufficient for the tightening of the monetary policy, confirmed the reversal of the pair form the 6 month minimum. As a result the USD/JPY pair consolidated above the key level of 112.00.
Today the USA ADP Employment Change publication is expected (the forecast is negative), which can affect the USA FRS monetary policy decision and disappoint the market. There is The Constitution Day in Japan today, so due to the holyday there is no news from Japan.
The growth of the pair is expected today and tomorrow.
Support and resistance
Support levels: 111.20, 110.20, 108.90.
Resistance levels: 112.20, 113.20, 114.00.
Trading scenario
Open long positions at the current price with the target at 113.20 and stop loss at 111.10.
Sell the pair at the level of 111.20 with the target at 110.20 and stop loss at 112.00.