Technical data of the currency pair:
Previous closing: 112.19;
Daily range: 111.90-112.62;
Annual revenue: -5.71%;
Change in % for the previous day: -0.04;
- Since the mid-February the Yen has significantly consolidated versus the USD due to the increasing interest the Japanese currency as a safe-haven;
- In the USA sales of new houses has dropped to 494К, which is below the forecast of (520К) by 5%;
- Further rise in the Yen is caused by the decline in the price of oil after the announcement of Saudi Arabia on Wednesday that the country was not planning to reduce production of oil;
- On Wednesday the Yen rose against the USD due to the decline in the world stock markets and fears about Brexit;
- “Commitments of Traders” show the rise in demand for the JPY. Large speculators have increased long positions by 2111 contracts.
- In the last two weeks the Yen has gained over 300 points against the USD. Ambiguous US statistics, decline in the global stock markets and high volatility in the commodity markets have increased demand for the Yen. According to “COT” large speculators show interest to the Japanese currency.
- In the near future the Yen will grow versus the USA. We recommend to open short positions.
Trading tips for the currency pair USD/JPY
Medium-term trading: currently, the pair is traded between the local support and resistance levels of 111.10 -113.35. After breaking down and testing of the level 111.10 and in case of the respective confirmation (for example, a pattern Price Action), we recommend to open short positions. Risk per trade is not more than 2% of capital. Stop order can be placed above the signal line. Take profit should be placed in parts of 110.50, 109.90 and 109.20 with the use of trailing stop.
Short-term trading: on the chart with the timeframe 15M the currency has overcome support level of 112.20. After testing and maintenance at the resistance zone of 112.20-112.45, we recommend to open short positions. Risk per trade is not more than 3% of capital. Stop order can be placed at the level of 112.65. Take profit should be placed in parts of 112.00, 111.70 and111.40 with the use of trailing stop.