Trading news

USD/JPY: correction will follow the rise

Current trend

On Tuesday the pair USD/JPY jumped up after BOJ announcement. Bank of Japan is going to increase the volumes of monetary base by 60-70 trillion yen and to double the program of urgent lending. The Yen was also under pressure of negative GDP stats. The indicator dropped down to the level of 0.3% instead of forecasted 0.7%.  

Supportandresistance

BOJ decision made the pair rise up to 100 pips and hit three-week highs at 102.75. The price has broken through the upper line of Bollinger Bands indicator, promising a correction to the levels of 102.25 and 102.00 (middle MA of Bollinger Bands). From each level we expect the price to go up. MACD histogram has entered positive zone, giving a signal to buy. Stochastic lines have crossed in overbought zone and are turning down.

Support levels: 102.25, 102.00, 101.80, 101.46.

Resistance levels: 102.75, 103.00, 103.25.

Trading tips

It is recommended to open short trades with targets at 102.25. At the same level pending buy orders can be placed.

 

Dmitry Zolotov

Analyst of LiteForex Group of Companies

Tuesday, 18 Feb, 2014 / 9:35

Source : http://www.liteforex.com/

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