USD/JPY: the pair will grow

Current trend

The USD/JPY pair is forming the upward channel. The main catalyst for the growth is the negative fundamental background in Japan.

At the beginning of the week, the pair weakened to the lower border of the downward channel and peaked up. Today the yen is decreasing due to Tertiary Industry Index release, which was in a red zone at the level of –0.6%. The growth if the investment attractiveness of the US currency and the maintenance of Bank of Japan monetary policy supported the instrument additionally.

Today the US Consumer Price Index will be published. At the end of the trading week the US Retail Sales, inflation, and employment market data are worth traders’ attention.

Support and resistance

In the middle term, the upward trend will maintain, the pair will move within the current upward channel with the targets at 107.75, 108.15, 108.45. An insignificant correction is possible at the current level with the target at 106.80, where the upward wave will form.

Technical indicators confirm the growth, MACD long positions volume is growing, Bollinger Bands are directed upwards.

Resistance levels: 107.30, 107.75, 108.15, 108.45, 109.00.

Support levels: 106.80, 106.10, 105.60, 105.00, 104.50.

Trading tips

It is relevant to increase the volumes of long positions at the current level and open pending long positions at the level of 106.80 with the target at 108.15 and stop loss 106.40.

US Dollar vs Japanese Yen

Buy Sell Spread
106.933 106.912 21

Scenario

Timeframe Day’s Range
Recommendations BUY
Entry Point 107.19
Take Profit 108.15
Stop Loss 106.40
Support levels 104.50, 105.00, 105.60, 106.10, 106.80, 107.30, 107.75, 108.15, 108.45, 109.00

Alternative scenario

Recommendations BUY LIMIT
Entry Point 106.80
Take Profit 108.15
Stop Loss 106.40
Support levels 104.50, 105.00, 105.60, 106.10, 106.80, 107.30, 107.75, 108.15, 108.45, 109.00

USD/JPY: the pair will grow

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