USD/JPY: Yen regains its losses 15 January 2021, 11:19

USD/JPY: Yen regains its losses

15 January 2021, 11:19

Scenario
Timeframe	Weekly
Recommendation	SELL STOP
Entry Point	103.50
Take Profit	102.64
Stop Loss	104.00
Key Levels	102.64, 103.50, 104.25, 105.44

Alternative scenario
Recommendation	BUY STOP
Entry Point	104.25
Take Profit	105.44
Stop Loss	103.80
Key Levels	102.64, 103.50, 104.25, 105.44

Current trend

The USD/JPY pair has reversed and declined, trading at 103.79.

The Japanese currency is actively winning back losses under the influence of positive macroeconomic statistics. The latest reports from the Central Bank show that foreign investors have become more trusting in local companies, and the volume of investments increased from –85.5 billion to 580.8 billion. The volume of Core Machinery Orders for November grew by 1.5%, which is significantly better than the forecasted decline by –6.2%.

The American currency has suspended its growth and is consolidating at yesterday's levels amid negative data on the labor market. Initial Jobless Claims rose to 965K, which speaks of an increase of 181K compared to last week's data of 784K people. Jobless Claims 4-Week Average also increased to 834.25K against the background of 816.00K for the previous period.

Support and resistance

On the global chart of the asset, the price reached the resistance line of the global downtrend channel, reversed, and went downwards. Technical indicators, which were ready for a reversal, change their readings to downwards ones. Fast EMAs of the alligator indicator crossed with the signal one, and the histogram of the AO oscillator is trading near the transition level.

Support levels: 103.50, 102.64.

Resistance levels: 104.25, 105.44.

Trading tips

After decline or consolidation below the local support of 103.50, sell positions with the target at 102.64 are relevant. Stop loss is 104.00, above the current price. Implementation period: 7 days or more.

After corrective growth or consolidation above the resistance level of 104.25, buy positions with the target at the resistance level of 105.44 are relevant. Stop loss is 103.80.