LiteForex - Analytics

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    Analytical review of the currency pair USD/JPY as of 13.06.2016

    Technical data of the currency pair:

    Previous closing: 107.00; Daily range: 105.75-107.25;
    Opening: 106.84; 52-week range: 105.52-125.86;
    Annual income: -10.79%; Change in % for the previous day: -0.10.

    Analytical review:

    • Over the past two weeks “safe-haven” currency has grown considerable (over 450 points) against the USD. Today, the rally of the Yen continues. During the Asian session the currency pair fell more than by 1 %;
    • High demand for the Yen is supported by the data on monetary policies of the USA, Switzerland and the UK;
    • Earlier, US Department of Labor issued weak data on labor market. In May, there were only 38000 new jobs created outside agricultural sector, which was the worst figure since September 2010;
    • “Commitments of Traders” shows the increase in short positions by 17718 contracts, up to 127573 contracts 86211 contracts have been opened for the long positions;
    • Statistics of this week will include: Retail sales volume in the USA (Tuesday); Monetary policy report by the Bank of Japan (Thursday). This data can affect movement direction in the pair and market volatility.

    Summary:

    • Uncertainty about future monetary policies of the EU countries, decrease of expectations of the interest rate rise in the USA amid the poor data on the labor market and increased market volatility will put strong pressure on the currency pair. According to “COT” large investors prefer short positions.
    • In the near future the Yen is likely to grow against the USA. It is advisable to open short positions.

    Trading tips for the currency pair USD/JPY

    Key levels:
    Support level: 105.60.
    Resistance levels: 106.45 and 107.25.

    Medium-term trading, H4
    At the moment, the currency has broken down and conso9lidated below support level of 106.45. If the pair maintains the mirrored resistance level of 106.45 and in case of the respective confirmation (such as Price Action pattern), it is recommended to open short positions. Risk per trade is not more than 2% of the capital. Stop order can be placed slightly above the signal line. Take profit can be placed in parts at the levels of 105.65, 105.05 and 104.50 with the use of trailing stop.

    Medium-term trading, H4
    Medium-term trading, H4

    Short-term trading, М15
    Currently, the currency is traded in the range of 105.80-106.10. . It is advisable to enter the market after breaking out and testing of this zone. Positions can be opened near the signal line and the nearest support/resistance levels. Risk per trade is not more than 3% of capital. Stop order can be placed slightly above/below the signal line. Take profit can be placed in parts at the levels of 50%, 30% and 20% with the use of trailing stop.

    Short-term trading, М15
    Short-term trading, М15


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