Re: Forex Analysis by LiteForex
USD/JPY: general analysis
During last few trading weeks USD is rapidly falling against JPY due to the decrease of the investment attractiveness of the US currency after the slowing of the USA Fed’s monetary policy tightening. In addition, the change of the US regulator’s head affected USD negatively.
Last week favorable Q3 economy growth data were released, and yen grew significantly. There were no key macroeconomic data this week, but the momentum strengthened and the demand on Japanese currency increased, as a result the pair fell by more than 150 points. Yesterday the instrument reached the key support level of 111.00 and reversed into consolidation.
Due to US holidays in the end of the week the significant movement of the pair is not expected.
Support and resistance
In the short term the correction within the downward channel is expected, after the end of which the pair can fall to the levels of 110.50, 109.00.
At the moment the demand on yen is high, which draws the pair downwards, and if US Fed will postpone the interest rate rise to 2018, the instrument can reach the levels of 108.15, 107.50.
On the 4-hour chart technical indicators confirms the forecast, MACD short positions volumes are growing, Bollinger Bands are pointed downwards.
Resistance levels: 111.50, 111.75, 112.40, 112.60, 112.85, 113.45, 113.70, 114.00.
Support levels: 111.00, 110.50, 110.20, 109.55, 109.00, 108.15, 107.50.
It’s relevant to increase the volumes of short positions at the current level with the targets at 110.50, 109.00 and stop loss at 112.10.