Market Review

USD/JPY: general review

Current trend

The US dollar remains in an uptrend against the Japanese yen.

In early March, the price reached the lower border of the channel, but, failing to overcome the key support levels of 111.10, 111.00, it went up again. The main catalyst for growth is the strengthening of USD due to the growth in demand. Additional support is provided by negative releases on indices and orders for machinery and equipment in Japan published this week. Today, BoJ kept a negative key interest rate of -0.1%, which also reduces demand for the yen.

Today, one should pay attention to data on industrial output in the USA. The forecasts are positive, which can be an additional factor for the growth of USD.

Support and resistance

In the short term, the probability of testing a local maximum of 112.00 is extremely high. Later, this resistance level may be broken out, and the upward impulse will strengthen with targets at 112.40, 112.85 (upper border of the ascending range). If they are broken out, too, there's a possibility of growth to the levels of the end of 2018 (114.00, 114.50).

Technical indicators confirm the growth forecast: on H4 and D1 charts, MACD shows growth in the volume of long positions and Bollinger Bands are directed upwards.

Support levels: 111.50, 111.40, 111.10, 110.85, 110.65, 110.50, 110.35.

Resistance levels: 111.75, 112.00, 112.40, 112.85, 113.00.

Trading tips

In this situation, long positions may be opened from the current level with the target at 112.85 and stop loss at 111.30.

Scenario

Timeframe Weekly
Recommendation BUY
Entry Point 111.66
Take Profit 112.85
Stop Loss 111.30
Key Levels 110.35, 110.50, 110.65, 110.85, 111.10, 111.40, 111.50, 111.75, 112.00, 112.40, 112.85, 113.00

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