USD/JPY: the dollar is strengthening
Current trend
JPY is moderately decreasing against USD due to the growth of the investors’ interest in the US currency. Today’s Japanese releases did not affect the price significantly. The National Consumer Price Index decreased to 1.1% YoY in March from 1.5% in the previous month. The same index Ex Auto and Food and Energy stayed on the level of 0.5% in March.
Today’s Japanese macroeconomic data support a slight correction of the instrument but it is still trading around its 2-month highs. Preliminary, April PMI Nikkei grew from 53.1 to 53.3 points, while analysts expected the decrease to 52.6 points.
Support and resistance
On the daily chart, Bollinger Bands are strongly growing. The price range is almost the same, restricting the “bears” from growing.
Resistance levels: 108.00, 108.26, 108.83.
Support levels: 107.47, 107.27, 107.00, 106.71.
Trading tips
Long positions can be opened after the breakout of the level 108.00 with the target at 108.50 or 108.83 and stop loss 107.60.
Short positions can be opened after the rebound at the level of 108.00 with the targets at 107.47–107.27 or 107.00 and stop loss 108.30.
Implementation period: 2–3 days.
Scenario
Timeframe Intraday
Recommendation BUY STOP
Entry Point 108.05
Take Profit 108.50, 108.83
Stop Loss 107.60
Key Levels 106.71, 107.00, 107.27, 107.47, 108.00, 108.26, 108.83
Alternative scenario
Recommendation SELL LIMIT
Entry Point 108.00
Take Profit 107.47, 107.27, 107.00
Stop Loss 108.30
Key Levels 106.71, 107.00, 107.27, 107.47, 108.00, 108.26, 108.83
JPY is moderately decreasing against USD due to the growth of the investors’ interest in the US currency. Today’s Japanese releases did not affect the price significantly. The National Consumer Price Index decreased to 1.1% YoY in March from 1.5% in the previous month. The same index Ex Auto and Food and Energy stayed on the level of 0.5% in March.
Today’s Japanese macroeconomic data support a slight correction of the instrument but it is still trading around its 2-month highs. Preliminary, April PMI Nikkei grew from 53.1 to 53.3 points, while analysts expected the decrease to 52.6 points.
Support and resistance
On the daily chart, Bollinger Bands are strongly growing. The price range is almost the same, restricting the “bears” from growing.
Resistance levels: 108.00, 108.26, 108.83.
Support levels: 107.47, 107.27, 107.00, 106.71.
Trading tips
Long positions can be opened after the breakout of the level 108.00 with the target at 108.50 or 108.83 and stop loss 107.60.
Short positions can be opened after the rebound at the level of 108.00 with the targets at 107.47–107.27 or 107.00 and stop loss 108.30.
Implementation period: 2–3 days.
Scenario
Timeframe Intraday
Recommendation BUY STOP
Entry Point 108.05
Take Profit 108.50, 108.83
Stop Loss 107.60
Key Levels 106.71, 107.00, 107.27, 107.47, 108.00, 108.26, 108.83
Alternative scenario
Recommendation SELL LIMIT
Entry Point 108.00
Take Profit 107.47, 107.27, 107.00
Stop Loss 108.30
Key Levels 106.71, 107.00, 107.27, 107.47, 108.00, 108.26, 108.83
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