Current dynamics
Despite the lack of important data and news from Japan this week, the yen continued to strengthen against the US dollar. The negative reaction after the Friday NFPR continues, because it can direct affect the Fed's interest rate decisions. As a result, the pair USD/JPY broke the key support level at 110.20 and updated the six-week lows.
At the moment, investors' expectations for the US dollar are addressed to the decision of the Fed, which will be held on Wednesday next week. Most likely, the trend of decline this week will continue.
There are no data from Japan today, and the dynamics of the pair can be determined by the publication of the number of initial applications for unemployment benefits in the US at 14:30 (GMT+2), the forecast implies a decrease by 8K.
Support and resistance
Support levels: 109.40, 108.80, 108.10, 107.50.
Resistance levels: 110.20, 111.20, 111.60, 112.20.
Trading tips
Short positions can be opened at the market price, the targets are 109.40, 108.80, stop-loss can be set at 110.10.
Long positions at the level of 110.20 will become an alternative option. The targets are 111.20, 111.60, the stop loss is 109.50.
Despite the lack of important data and news from Japan this week, the yen continued to strengthen against the US dollar. The negative reaction after the Friday NFPR continues, because it can direct affect the Fed's interest rate decisions. As a result, the pair USD/JPY broke the key support level at 110.20 and updated the six-week lows.
At the moment, investors' expectations for the US dollar are addressed to the decision of the Fed, which will be held on Wednesday next week. Most likely, the trend of decline this week will continue.
There are no data from Japan today, and the dynamics of the pair can be determined by the publication of the number of initial applications for unemployment benefits in the US at 14:30 (GMT+2), the forecast implies a decrease by 8K.
Support and resistance
Support levels: 109.40, 108.80, 108.10, 107.50.
Resistance levels: 110.20, 111.20, 111.60, 112.20.
Trading tips
Short positions can be opened at the market price, the targets are 109.40, 108.80, stop-loss can be set at 110.10.
Long positions at the level of 110.20 will become an alternative option. The targets are 111.20, 111.60, the stop loss is 109.50.