USD/JPY

USD/JPY: the instrument is correcting

Current trend, The US dollar showed growth against the Japanese yen on Wednesday, reinforcing the “bullish” signal, formed the day before. As there was lack of key economic releases, JPY was traded under the influence of technical factors.

Published on Wednesday, macroeconomic statistics from the United States could not provide significant support to the dollar. Initial Jobless Claims increased from 221K to 224K in a week, with a forecast of a decline to 215K. Durable Goods Orders in October fell by 4.4% MoM after the decline by 0.1% MoM in September. Experts expected a decrease of 2.5% MoM.

Support and resistance

Bollinger Bands in D1 chart demonstrate flat dynamics. The price range consolidated in fairly spacious boundaries and does not contradict to the further development of the “bullish” trend. The MACD indicator tends to reverse into the ascending plane, but at the moment it keeps its previous sell signal (the histogram is below the signal line). Stochastic reversed upwards and reflects enough potential for the development of an uptrend in the short and/or ultra-short term.

One should wait for confirmation of the correctional growth signals from MACD.

Resistance levels: 113.18, 113.37, 113.63, 113.83.

Support levels: 113.00, 112.71, 112.29, 111.82.

5c574c4f8a769179db99073480d41c0f.png

Trading tips

To open long positions, one can rely on the breakout of 113.18. Take profit — 113.83 or 114.07. Stop loss — 112.90.

The return of “bearish” trend with the breakdown of the level of 112.71 may become a signal for the return to the sales with target at 112.00. Stop loss — 113.00.

Implementation period: 2-3 days.

 

Scenario

Timeframe Intraday
Recommendation BUY STOP
Entry Point 113.20
Take Profit 113.83, 114.07
Stop Loss 112.90
Key Levels 111.82, 112.29, 112.71, 113.00, 113.18, 113.37, 113.63, 113.83

 

Alternative scenario

 

Recommendation SELL STOP
Entry Point 112.65
Take Profit 112.00
Stop Loss 113.00
Key Levels 111.82, 112.29, 112.71, 113.00, 113.18, 113.37, 113.63, 113.83

Add comment

Security code
Refresh

Subscription

Forex Forecast

© 2014-2018 ForexCrypto.top, Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange, or any kind of trading you should carefully consider your investment objectives, level of experience, and risk appetite. No information or opinion contained on this site should be taken as a solicitation or offer to buy or sell any currency, equity or other financial instruments or services. Past performance is no indication or guarantee of future performance. ForexCrypto.top is an affiliate partner with various brokers and may be compensated for referred Traders. All reviews remain unbiased and objective and immediate action will be taken against any broker which is found to be in breach of regulation. These partnerships have proven to be great aids in the furthering communication between brokers and our visitors. Only the NFA regulated brokers featured on this site are available to U.S. customers. Forex

Search