USD/JPY: general review

Current trend

After the meeting of the Bank of Japan, the JPY dynamic confirms the main points of it. The current form of monetary policy is really bearing fruit: macroeconomic indicators are improving, and market participants expect positive results from data on retail sales and industrial production.

Poor data on new home sales in the US further strengthened the downward trend in the USD/JPY pair. Despite the expectations of 730K, sales reached 694K, and there is no mass increase that has been talked about so much. Despite this, the USD Index is significantly strengthening and is at the level of 97.850.

Today, the outcome of the Fed meeting and the decision on the interest rate can affect the dynamics of the pair. But, according to most analysts, the positive expectations of this event are already inherent in the current price of the American currency.

Support and resistance

Price is inside the global rising channel. Locally, the decline to the channel support line continues. Today, the Alligator indicator issued a signal for the start of sales, which was also confirmed by the AO oscillator, which crossed the zero line downwards.

Resistance levels: 109.30, 110.50.

Support levels: 107.80, 105.10.

Trading tips

After decline or consolidation below the local minimum and the support line at 107.80, it is better to keep the current short positions and open new ones with the target at 105.10. Stop loss is above the support line, around 108.30.

After growth or consolidation above the local resistance at 109.30, purchase positions with the target at 110.50 will be relevant. In this case, stop loss is 108.60.

Implementation period: 5 days.

Scenario

  • Timeframe

    Weekly

  • Recommendation

    SELL STOP

  • Entry Point

    107.80

  • Take Profit

    105.10

  • Stop Loss

    108.30

  • Key Levels

    105.10, 107.80, 109.30, 110.50

Alternative scenario

  • Timeframe

    Weekly

  • Recommendation

    BUY STOP

  • Entry Point

    109.30

  • Take Profit

    110.50

  • Stop Loss

    108.60

  • Key Levels

    105.10, 107.80, 109.30, 110.50

Tifia trading account

Open

USD/JPY analysis for today.