USD continued to decline against the Japanese yen in the last trading week and reached new local lows (106.10, 105.60 marks). After that, the pair reached the key support level of 105.60 and began to reverse.
The current week opened with an upward impulse, which is still preserved. The pair has passed more than 150 points and has nearly reached a strong resistance level of 107.30. The main catalysts for the growth of the instrument were favorable data from the US at the end of last week, which contributed to the growth of investment attractiveness of the dollar. At the beginning of this week, the momentum was preserved due to a change in trade sentiment.
Key releases will come out at the end of the trading week: it will be data on the labor market and major US indices, as well as the FOMC minutes.
Support and resistance
Despite the fact that the pair remains in the long-term downtrend, in the short term it has the power to reserve upwards with the target of 108.45. After that, the pair can again form a downward wave or breakout this mark and show a change in the long-term trend. In the current situation, one should expect the growth of the oversold dollar and open long positions.
Technical indicators on the H4 chart indicate a change in trading sentiment, MACD shows a sharp drop in the volume of short positions, and Bollinger Bands reversed and turned down.
Support levels: 106.80, 106.10, 105.60, 105.00, 104.70, 104.30, 103.50, 103.00.
Resistance levels: 107.30, 107.75, 108.15, 108.45, 109.00, 109.55, 109.85, 110.50.
In this situation, long positions may be opened from the current level with targets at 107.75, 108.15 and stop-loss at 106.60.
US Dollar vs Japanese Yen
|Take Profit||107.75, 108.15|
|Support levels||103.00, 103.50, 104.30, 104.70, 105.00, 105.60, 106.10, 106.80, 107.30, 107.75, 108.15, 108.45, 109.00, 109.55, 109.85, 110.50|
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