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USD/JPY: general analysis 23 June 2017, 14:03


Scenario
Timeframe Intraday
Recommendation SELL STOP
Entry Point 111.00
Take Profit 110.00
Stop Loss 111.40
Key Levels 109.20, 110.00, 111.00, 111.80, 112.30, 113.00
Alternative scenario
Recommendation BUY STOP
Entry Point 111.90
Take Profit 112.30, 113.00
Stop Loss 111.50
Key Levels 109.20, 110.00, 111.00, 111.80, 112.30, 113.00

Current trend
During the yesterday trading session the Japanese yen has strengthened against the US dollar due to the weakening of it. The catalyst of the USD lowering was the drop of the US treasury bonds yield. As a result the USD/JPY pair fall the level of 110.94 and met the support at the level of 111.00.
Still the USD/JPY is supported by the FRS decision to increase the interest rate, which was published last week, and the followed “hawkish” commentaries of the FOMC members, which reflected the maintenance of tightening the monetary policy possibility this year.
The macroeconomic statistics should confirm the commitment of the regulator to this course. Today the traders will pay their attention to the list of the data from the USA. The Markit Manufacturing PMI and the New Home Sales data will be published today. In case of strong data the test of the level of 111.80 and the following attempt to grow to the higher resistance levels is expected.
Support and resistance
On the 4-hour chart the pair is trading within the sideway channel of 111.00-111.80. MACD is below the signal line, its volumes are growing, Stochastic lines have crossed and are pointed downwards. The indicators give a sell signal.
Support levels: 111.00, 110.00, 109.20.
Resistance levels: 111.80, 112.30, 113.00.

Trading scenario
Open short positions at the level of 111.00 with the target at 110.00, stop loss is at 111.40.
Open long positions if the price is set above the level of 111.80 with the target at 112.30 and 113.00 and stop loss at 111.50.
Implementation period: 1-2 days.
Από το Blogger.