USD/JPY: general review
06 February 2019, 13:29
| Scenario | |
|---|---|
| Timeframe | Weekly |
| Recommendation | BUY |
| Entry Point | 109.70 |
| Take Profit | 110.00, 110.75, 111.10 |
| Stop Loss | 109.50 |
| Key Levels | 108.00, 108.50, 108.65, 109.075, 109.33, 109.55, 109.80, 110.00, 110.75, 111.10, 111.70, 112.30 |
Current trend
The American dollar against the Japanese yen maintains an upward momentum; the pair remains within the medium-term upward channel, despite a serious correction at the end of January to the levels of 108.54, 108.50.
In early February, the instrument reversed up on the growth in demand for the US currency and weak macroeconomic statistics from Japan. Later, the pair consolidated within a narrow lateral consolidation of 110.15–109.60.
Support and resistance
Currently, the instrument has reached the lower border of the range at 109.60, which will not be easy to break down. On the other hand, over the past three weeks, the price has reached maxima of 110.00, 110.15, but cannot break out of them. Judging by the technical analysis and the gradual recovery of the dollar, the prospect of taking highs and growth to the levels of 110.75, 111.10 is more likely.
Technical indicators on H4 and D1 charts confirm the forecast: MACD shows growth in the volume of long positions and Bollinger Bands are directed upwards.
Support levels: 109.55, 109.33, 109.075, 108.65, 108.50, 108.00.
Resistance levels: 109.80, 110.00, 110.75, 111.10, 111.70, 112.30.
Trading tips
In this situation, long positions may be opened from the current level with targets at 110.00, 110.75, 111.10 and stop loss at 109.20.
The American dollar against the Japanese yen maintains an upward momentum; the pair remains within the medium-term upward channel, despite a serious correction at the end of January to the levels of 108.54, 108.50.
In early February, the instrument reversed up on the growth in demand for the US currency and weak macroeconomic statistics from Japan. Later, the pair consolidated within a narrow lateral consolidation of 110.15–109.60.
Support and resistance
Currently, the instrument has reached the lower border of the range at 109.60, which will not be easy to break down. On the other hand, over the past three weeks, the price has reached maxima of 110.00, 110.15, but cannot break out of them. Judging by the technical analysis and the gradual recovery of the dollar, the prospect of taking highs and growth to the levels of 110.75, 111.10 is more likely.
Technical indicators on H4 and D1 charts confirm the forecast: MACD shows growth in the volume of long positions and Bollinger Bands are directed upwards.
Support levels: 109.55, 109.33, 109.075, 108.65, 108.50, 108.00.
Resistance levels: 109.80, 110.00, 110.75, 111.10, 111.70, 112.30.
Trading tips
In this situation, long positions may be opened from the current level with targets at 110.00, 110.75, 111.10 and stop loss at 109.20.
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