Since mid- February, the pair USD/JPY has traded in the range of 115.05 Fibonacci 23.6%) – 112.00, 114.30 (ЕМА200 on 4-hour chart) – 112.40 (zero Fibonacci retracement level to the last wave of decline since 18 November and the level of 123.60).
The Yen is in demand as a safe=-haven currency and amid the decision of the Bank of Japan to introduce negative interest rate (although this decision has not brought any positive results so far). Today’s decision of the bank to leave monetary policy unchanged does not boost the rise of the Japanese stock market and sales of the Yen either.
In expectation of tomorrow’s decision of the US fed the pair USD/JPY is under pressure.
The pair is below the key resistance levels of 114.30 and 115.05. On the 4-hour, daily and weekly charts the indicators OsMA and Stochastic give signals for short positions.
The decline can continue in the descending channel with the bottom limit at the support level of 108.00 (ЕМА200 on the weekly chart). The nearest target for this scenario is support level of 111.30 (ЕМА144 on the weekly chart and the lows of February).
Otherwise, the pair can rise up to the level of 116.65 (Fibonacci 38.2%) after consolidation of the price above the level of 115.05 (Fibonacci 23.6%)
Support levels: 112.40, 112.00 and 111.30.
Resistance levels: 114.30, 115.05, 116.65, 118.00 and 119.30.
Buy Stop: 114.20. Stop Loss: 113.80. Take-Profit: 114.90, 115.05 and 116.65.
Sell Stop: 112.80. Stop Loss: 113.20. Take-Profit: 112.40, 112.00, 111.30 and 111.00.