Apr 10, 2020, 10:01:33 AM

USD/JPY: general review

Current trend

Yesterday, the pair slightly decreased after the publication of data from the University of Michigan, reflecting a drop in consumer confidence in the USA. The decrease in the rate was not surprising, as the country is switching to a strict quarantine regime. After the publication, the Fed announced program of support for medium and small businesses in the amount of USD 2.3B, which created additional pressure on USD. A state of emergency was also declared in Japan, as the authorities are not able to control the spread of the coronavirus epidemic.

The oil prices growth and the restoration of Chinese economic activity provoked an increase in interest in risk. Market participants are interested in buying AUD, CAD and NZD; a less attractive GBP is also in focus. Interest in JPY is fading, while USD continues to be a safe haven for traders.

Today at 14:30 (GMT+2), the US Consumer Price Index data will be released. The projected drop in the indicator will not influence the pair much. The scenario of medium-term strengthening of the instrument looks most likely.

Support and resistance

On the H4 chart, there is an upward correction. The instrument is consolidating at the lower border of Bollinger Bands, which acts as the closest support level. The indicator is directed sideways, and the price range is limited; correction may continue. MACD histogram is at the zero level; the signal for entering the market is not formed. Stochastic does not give a signal for opening positions.

Resistance levels: 109.19, 110.05, 110.95, 112.03.

Support levels: 108.36, 107.12, 106.38, 105.60.

Trading tips

Long positions may be opened above 109.15 with target at 110.00 and stop-loss at 108.80.

Short positions may be opened below 107.90 with target at 107.10 and stop-loss at 108.20.

Implementation time: 1-2 days.

Scenario

  • Timeframe

    Intraday

  • Recommendation

    BUY STOP

  • Entry Point

    109.20

  • Take Profit

    110.00

  • Stop Loss

    108.80

  • Key Levels

    105.60, 106.38, 107.12, 108.36, 109.19, 110.05, 110.95, 112.03

Alternative scenario

  • Timeframe

    Intraday

  • Recommendation

    SELL STOP

  • Entry Point

    107.85

  • Take Profit

    107.10

  • Stop Loss

    108.20

  • Key Levels

    105.60, 106.38, 107.12, 108.36, 109.19, 110.05, 110.95, 112.03

Tifia trading account

Open

USD/JPY analysis for today.