Trading news

USD/JPY: general analysis

Current trend 

The pair USD/JPY is trading at the top limit of the trading channel at the level of 103.44. If this level is broken out in the near future, the Yen will resume the decline. It seems that monetary policy of the Japanese Central Bank, aimed to fight off deflation and high exchange rate of the national currency is successful. According to the latest data, unemployment in Japan continues to reduce breaking new records: The rate fell to 3.6%. Consumer prices are also improving. In February CPI excluding food and energy has reached 0.8% against 0.7% in January.

If US Fed raises interest rate in the nearest time, the Yen will continue to drop in price, as interest rates in two countries differs significantly, making the USD more attractive for investments.  

Support and resistance

The nearest resistance level is the upper limit of the trading channel (103.44). Support level is 102.25 (moving average with the period 200).

Trading tips 

It is advisable to place long positions after breakdown of the level of 103.44 with stop loss at 103.15 and a target of 104.20.

 

Dmitry Agurbash

Analyst of LiteForex Group of Companies

Wednesday, 02 Apr, 2014 / 5:56

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

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