Current trend
The USD/JPY is lowering due to the fall of the profitability of the USA 10-years bonds. As there is no significant macroeconomical data, the investors rely on this indicator and sell the US currency.
Today the USD/JPY consolidated below the level of 113.00 due to the pressure of the positive Japan Industrial Production data. The YoY index grew to 3.5% in March from 3.3% in the previous month. The MoM index is -1.9% in March against -2.1% in the previous month. Today there is no significant macroeconomical event that can affect the current dynamics of the pair, so the continuation of the downward trend is expected.
Support and resistance
The technical indicators reflect the continuation of the downward movement. Bollinger Bands are pointed downwards. MACD histogram is in the negative zone; its volumes are rapidly growing and forming a sell signal. There is no clear sighs of the correction yet. The nearest target of the sellers is the level of 112.08.
The correction can be confirmed if the next 4-hour candle will close above the level of 112.71. The correction can develop to the area of the middle line of Bollinger Bands (113.25).
Support levels: 112.08, 111.43, 110.84.
Resistance levels: 112.71, 113.25, 114.02.
Trading scenario
Sell the pair from the current level with the target at 112.08, 111.43 and stop loss at 112.70.
Buy the pair above the level of 112.71 with the target at around 113.25 and stop loss at 112.50. The breakout of the level of 113.25 will let the pair to move to the level of 114.02.
The USD/JPY is lowering due to the fall of the profitability of the USA 10-years bonds. As there is no significant macroeconomical data, the investors rely on this indicator and sell the US currency.
Today the USD/JPY consolidated below the level of 113.00 due to the pressure of the positive Japan Industrial Production data. The YoY index grew to 3.5% in March from 3.3% in the previous month. The MoM index is -1.9% in March against -2.1% in the previous month. Today there is no significant macroeconomical event that can affect the current dynamics of the pair, so the continuation of the downward trend is expected.
Support and resistance
The technical indicators reflect the continuation of the downward movement. Bollinger Bands are pointed downwards. MACD histogram is in the negative zone; its volumes are rapidly growing and forming a sell signal. There is no clear sighs of the correction yet. The nearest target of the sellers is the level of 112.08.
The correction can be confirmed if the next 4-hour candle will close above the level of 112.71. The correction can develop to the area of the middle line of Bollinger Bands (113.25).
Support levels: 112.08, 111.43, 110.84.
Resistance levels: 112.71, 113.25, 114.02.
Trading scenario
Sell the pair from the current level with the target at 112.08, 111.43 and stop loss at 112.70.
Buy the pair above the level of 112.71 with the target at around 113.25 and stop loss at 112.50. The breakout of the level of 113.25 will let the pair to move to the level of 114.02.