USD/JPY: dollar restores its positions 11 March 2021, 08:59

USD/JPY: dollar restores its positions

11 March 2021, 08:59

Scenario
Timeframe	Intraday
Recommendation	BUY STOP
Entry Point	109.05
Take Profit	110.00
Stop Loss	108.40
Key Levels	107.00, 107.42, 107.78, 108.15, 109.00, 109.37, 109.84

Alternative scenario
Recommendation	SELL STOP
Entry Point	108.10
Take Profit	107.00
Stop Loss	108.70
Key Levels	107.00, 107.42, 107.78, 108.15, 109.00, 109.37, 109.84

Current trend

After a short period of corrective dynamics, the US dollar is returning to growth in pairing with the Japanese yen, trading near the level of 108.60. The American currency is recovering after the correction in the yield of US Treasury bonds, which in the last few days has become one of the main drivers in the market.

In turn, the recovery of the dollar is hampered by poor macroeconomic statistics on inflation, as well as expectations of the entry into force of a new package of assistance to the national economy of $1.9 trillion. The bill has passed the final approval in the US Congress, and now the word remains only with President Joe Biden, who plans to sign it on Friday.

Support and resistance

Bollinger bands grow steadily on the daily chart. The price range narrows slightly, reflecting the ambiguous nature of trading in recent days but remains spacious enough for the current level of market activity. MACD tries to reverse into the downwards plane and form a new sell signal (the histogram should be below the signal line). Stochastic declines more confidently, indicating that USD may become overbought in the ultra-short term. The indicator practically does not react to USD attempt to increase during the Asian session on March 11.

It is better to wait until the signals from technical indicators are clarified to open new positions.

Resistance levels: 109.00, 109.37, 109.84.

Support levels: 108.15, 107.78, 107.42, 107.00.

Trading tips

Long positions may be opened after the breakout of 109.00 with the target at 110.00. Stop loss – 108.40. Implementation period: 1–2 days.

Short positions may be opened after the breakdown of 108.15 with the target at 107.00. Stop loss – 108.70.