USD/JPY: general review
11 December 2018, 10:50
| Scenario | |
|---|---|
| Timeframe | Intraday |
| Recommendation | SELL |
| Entry Point | 113.05 |
| Take Profit | 112.70, 112.50 |
| Stop Loss | 113.25 |
| Key Levels | 112.30, 112.50, 112.89, 113.08, 113.28, 113.67, 113.67, 113.86 |
| Alternative scenario | |
|---|---|
| Recommendation | BUY STOP |
| Entry Point | 113.30 |
| Take Profit | 113.67, 114.06 |
| Stop Loss | 113.05 |
| Key Levels | 112.30, 112.50, 112.89, 113.08, 113.28, 113.67, 113.67, 113.86 |
Current trend
Due to the general strengthening of the US currency, as well as weak data on Japan's GDP for the third quarter of 2018, USD/JPY rose to the level of 113.28.
Today, investors will pay attention to the statistics on US PPI (15:30 GMT+2). The index is expected to drop to 0.0% in November from 0.6% a month earlier, which could put pressure on the pair in the short term.
Support and resistance
From a technical point of view, the growth potential still remains, but the development of a downward correction is not excluded. The consolidation of the price below 113.08 (Murray [3/8]) will be a signal for a correction to the area of the middle line of the Bollinger Bands (112.70). From the midline, the pair can rebound upward, or pierce it down and continue to decline to yesterday's lows of 112.50–112.30, where the strong support zone is located. If the price goes above the level of 113.28 (Murray [4/8]), where a rather strong resistance level is located, it will open the way to the levels of 113.67–114.06.
Other indicators do not give a clear signal. MACD volumes are slowly growing in the positive zone, forming a buy signal. Stochastic is out of the overbought zone and pointing down, indicating the development of a downward correction. Bollinger bands are getting wider, reflecting the development of the current downward trend.
Support levels: 113.08, 112.89, 112.50, 112.30.
Resistance levels: 113.28, 113.67, 113.67, 113.86.
Trading tips
Short positions can be opened below 113.08 with targets in the range of 112.70–112.50 and a stop loss at 113.25.
Long positions will become relevant above the level of 113.28 with targets in the range of 113.67–114.06 and a stop loss at 113.05.
Implementation period: 1 day.
Due to the general strengthening of the US currency, as well as weak data on Japan's GDP for the third quarter of 2018, USD/JPY rose to the level of 113.28.
Today, investors will pay attention to the statistics on US PPI (15:30 GMT+2). The index is expected to drop to 0.0% in November from 0.6% a month earlier, which could put pressure on the pair in the short term.
Support and resistance
From a technical point of view, the growth potential still remains, but the development of a downward correction is not excluded. The consolidation of the price below 113.08 (Murray [3/8]) will be a signal for a correction to the area of the middle line of the Bollinger Bands (112.70). From the midline, the pair can rebound upward, or pierce it down and continue to decline to yesterday's lows of 112.50–112.30, where the strong support zone is located. If the price goes above the level of 113.28 (Murray [4/8]), where a rather strong resistance level is located, it will open the way to the levels of 113.67–114.06.
Other indicators do not give a clear signal. MACD volumes are slowly growing in the positive zone, forming a buy signal. Stochastic is out of the overbought zone and pointing down, indicating the development of a downward correction. Bollinger bands are getting wider, reflecting the development of the current downward trend.
Support levels: 113.08, 112.89, 112.50, 112.30.
Resistance levels: 113.28, 113.67, 113.67, 113.86.
Trading tips
Short positions can be opened below 113.08 with targets in the range of 112.70–112.50 and a stop loss at 113.25.
Long positions will become relevant above the level of 113.28 with targets in the range of 113.67–114.06 and a stop loss at 113.05.
Implementation period: 1 day.
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