Published On: Mon, Mar 20th, 2017

USD/JPY: consolidation in the upward trend


Current trend

The USD/JPY pair is trading in the wide sideway channel due to the changing of the investors’ moods about the USD. After the publication of the interest rate decision the USD is rapidly lowering due to the Janet Yellen commentaries upon the further steps of the FRS in the monetary policy. The traders expected to get more specific information about the next interest rate rise, but, as they weren’t satisfied, the USD weakened. On the other hand, the JPY is growing due to the positive fundamental data from Japan. The USA President Trump Speech, the employment market data and the durable goods orders are worth traders’ attention this week.

Support and resistance

Despite the fall of the USD the possibility of the long consolidation of this trend is not so possible. The formation of the long upward wave is possible due to the investors’ interest in the weakened dollar and the range of strong support levels on the way of the price. The consolidation of the price in the upward trend with the target at 115.15, 115.50 is expected. The technical indicators didn’t manage to react quickly and now give a sell signal. The MACD reflects the growth of the short positions volumes.

Support levels: 112.35, 112.00, 111.70, 111.10, 110.50, 110.10, 109.50, 109.00.

Resistance levels 113.15, 114.00, 114.50, 115.15, 115.50, 116.10.

Trading scenario

Open long positions at the current level and pending long positions from the key levels with the target at 115.15, 115.50, stop loss is at 111.00.

Forex Analysis

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