USD/JPY

USD/JPY: general review

Current trend, The past two days, the yen is moderately strengthening against USD, despite the latest ambiguous inflation data.

In October, the consumer price index in Japan rose expectedly from 1.2% to 1.4% (for the fourth consecutive month), while the basic CPI remained at 1.0%. According to the Ministry of Internal Affairs and Communications, the rise in prices was due to an increase in the cost of gasoline, kerosene and other types of fuel. A serious decline in oil prices in November could put pressure on Japanese inflation: Consumer price indices may start to decline again, not approached the target level of 2.0%.

This may entail a forced refusal of the Bank of Japan to take any measures to tighten monetary policy, although in some aspects it begins to negatively affect the economy. The head of the regulator Haruhiko Kuroda has already noted that low interest rates reduce the profitability of regional banks.

Support and resistance

Currently, the price has reversed around the level of 112.50 (Murrey [4/8]) and is trying to break out the midline of Bollinger Bands (113.28). If successful, growth may continue to 114.06 (Murrey [6/8], the upper line of Bollinger Bands) and 114.50 (October highs). This is confirmed by the Stochastic reversed up. The level of 112.5 will be the key one for the “bears”.    If the price consolidates below it, a decrease to 111.72 (Murrey [3/8]) and 110.93 (Murrey [2/8]) is possible.

Support levels: 112.50, 111.72, 110.93.

Resistance levels: 113.28, 114.06, 114.50.

dc224798899fda752f51a509842cb645.png

Trading tips

Long positions may be opened above 113.28 with targets at 114.06, 114.50 and stop loss at 112.80.

Short positions may be opened below 112.50 with targets at 111.72, 110.93 and stop loss at 112.90.

Implementation period: 4-5 days.

 

Scenario

Timeframe Weekly
Recommendation BUY STOP
Entry Point 113.35
Take Profit 114.06, 114.50
Stop Loss 112.80
Key Levels 110.93, 111.72, 112.50, 113.28, 114.06, 114.50

 

Alternative scenario

 

Recommendation SELL STOP
Entry Point 112.45
Take Profit 111.72, 110.93
Stop Loss 112.90
Key Levels 110.93, 111.72, 112.50, 113.28, 114.06, 114.50

Add comment

Security code
Refresh

© 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