USD/JPY: general analysis
Current trend
Despite strong macroeconomic statistics that were released today in Japan, the Yen remains under pressure amid expectations of a cut in interest rates at the upcoming Bank of Japan meeting, due 29 July. Moreover, it should also be noted that other major central banks also consider further easing of monetary policy to overcome negative effects of Britain’s exit from the EU. Thus, the US Dollar is seen as a more attractive asset in the current situation.
Support and resistance
Bollinger Bands on the 4-hour chart is directed horizontally while the price range is showing no changes. The instrument fell below the support level of 106.27. MACD histogram is in the positive zone, but its volumes are falling. The indicator is giving a sell signal. Stochastic reached the border of the overbought zone and turned down.
The indicators recommend short positions.
Support levels: 105.98, 105.67, 105.43, 105.04.
Resistance levels: 106.27, 106.50, 106.70, 107.16, 107.45.
Trading tips
Short positions can be opened from the current levels with the target at 105.43 and stop-loss at 106.70. Validity – 1-2 days.
Long positions can be opened from the level of 106.50 with the target at 107.00 and stop-loss at 106.15. Validity – 1-2 days.
Current trend
Despite strong macroeconomic statistics that were released today in Japan, the Yen remains under pressure amid expectations of a cut in interest rates at the upcoming Bank of Japan meeting, due 29 July. Moreover, it should also be noted that other major central banks also consider further easing of monetary policy to overcome negative effects of Britain’s exit from the EU. Thus, the US Dollar is seen as a more attractive asset in the current situation.
Support and resistance
Bollinger Bands on the 4-hour chart is directed horizontally while the price range is showing no changes. The instrument fell below the support level of 106.27. MACD histogram is in the positive zone, but its volumes are falling. The indicator is giving a sell signal. Stochastic reached the border of the overbought zone and turned down.
The indicators recommend short positions.
Support levels: 105.98, 105.67, 105.43, 105.04.
Resistance levels: 106.27, 106.50, 106.70, 107.16, 107.45.
Trading tips
Short positions can be opened from the current levels with the target at 105.43 and stop-loss at 106.70. Validity – 1-2 days.
Long positions can be opened from the level of 106.50 with the target at 107.00 and stop-loss at 106.15. Validity – 1-2 days.
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