USD/JPY: a reverse to an upward trend

Current trend

USD against JPY continues to trade within a broad sideways trend. The pair USD/JPY failed to consolidate within the downwards channel, and USD began to grow, but it still lacks the strength to break through the key resistance level of 111.75. Now the instrument is trading within the range of 110.50–111.750.

At the end of last week, the US labor market data were ambiguous, which did not support USD: unemployment statistics did not meet its positive forecasts, however, Nonfarm Payrolls exceeded the expectations. In the near future, it is worth paying attention to data on inflation, retail sales, industrial production, and key US indices.

Support and resistance

In the medium term, an upward momentum is expected to increase, reaching a key resistance level of 111.75 and moving to local highs of this mid-July at 113.00, 113.20. JPY is under pressure due to the maintenance of the soft monetary policy of the Bank of Japan. Prospects for raising the Fed’s rates support USD.

Technical indicators reflect the growth, MACD keeps a high volume of long positions, Bollinger bands are directed upwards.

Resistance levels: 111.40, 111.75, 112.15, 112.40, 112.85, 113.20.

Support levels: 111.15, 111.00, 110.85, 110.75, 110.20, 110.00, 109.85, 109.55, 109.00.

Trading tips

It is relevant to open long positions from the current level with the target at 112.40 and stop loss 110.20.

US Dollar vs Japanese Yen

Buy Sell Spread
111.09 111.068 22


Timeframe Weekly
Recommendations BUY
Entry Point 111.07
Take Profit 112.40
Stop Loss 110.20
Support levels 109.00, 109.55, 109.85, 110.00, 110.20, 110.75, 110.85, 111.00, 111.15, 111.40, 111.75, 112.15, 112.40, 112.85, 113.20

USD/JPY: a reverse to an upward trend

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