USD/JPY: a reverse to an upward trend
10 September 2018, 14:51
| Scenario | |
|---|---|
| Timeframe | Weekly |
| Recommendation | BUY |
| Entry Point | 111.07 |
| Take Profit | 112.40 |
| Stop Loss | 110.20 |
| Key Levels | 109.00, 109.55, 109.85, 110.00, 110.20, 110.75, 110.85, 111.00, 111.15, 111.40, 111.75, 112.15, 112.40, 112.85, 113.20 |
Current trend
USD against JPY continues to trade within a broad sideways trend. The pair USD/JPY failed to consolidate within the downwards channel, and USD began to grow, but it still lacks the strength to break through the key resistance level of 111.75. Now the instrument is trading within the range of 110.50–111.750.
At the end of last week, the US labor market data were ambiguous, which did not support USD: unemployment statistics did not meet its positive forecasts, however, Nonfarm Payrolls exceeded the expectations. In the near future, it is worth paying attention to data on inflation, retail sales, industrial production, and key US indices.
Support and resistance
In the medium term, an upward momentum is expected to increase, reaching a key resistance level of 111.75 and moving to local highs of this mid-July at 113.00, 113.20. JPY is under pressure due to the maintenance of the soft monetary policy of the Bank of Japan. Prospects for raising the Fed’s rates support USD.
Technical indicators reflect the growth, MACD keeps a high volume of long positions, Bollinger bands are directed upwards.
Resistance levels: 111.40, 111.75, 112.15, 112.40, 112.85, 113.20.
Support levels: 111.15, 111.00, 110.85, 110.75, 110.20, 110.00, 109.85, 109.55, 109.00.
Trading tips
It is relevant to open long positions from the current level with the target at 112.40 and stop loss 110.20.
USD against JPY continues to trade within a broad sideways trend. The pair USD/JPY failed to consolidate within the downwards channel, and USD began to grow, but it still lacks the strength to break through the key resistance level of 111.75. Now the instrument is trading within the range of 110.50–111.750.
At the end of last week, the US labor market data were ambiguous, which did not support USD: unemployment statistics did not meet its positive forecasts, however, Nonfarm Payrolls exceeded the expectations. In the near future, it is worth paying attention to data on inflation, retail sales, industrial production, and key US indices.
Support and resistance
In the medium term, an upward momentum is expected to increase, reaching a key resistance level of 111.75 and moving to local highs of this mid-July at 113.00, 113.20. JPY is under pressure due to the maintenance of the soft monetary policy of the Bank of Japan. Prospects for raising the Fed’s rates support USD.
Technical indicators reflect the growth, MACD keeps a high volume of long positions, Bollinger bands are directed upwards.
Resistance levels: 111.40, 111.75, 112.15, 112.40, 112.85, 113.20.
Support levels: 111.15, 111.00, 110.85, 110.75, 110.20, 110.00, 109.85, 109.55, 109.00.
Trading tips
It is relevant to open long positions from the current level with the target at 112.40 and stop loss 110.20.
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