Trading news

USD/JPY: General review

Current trend 

Japanese Yen continues to decline against the USD. During today’s Asian session the price was able to break through the moving average with the period 200. If the USD manages to maintain at this level, the Yen may continue to decline.

Experts believe that such rapid decline was provoked by aggressive measures of the Central Bank of Japan, which has had two objectives. The first one is to overcome deflation, and the second one is to weaken national currency by 20% in order to support national exporters. Meanwhile, politicians of Europe and Asia expressed their discontent because devaluation of national currency gives Japanese manufacturers competitive advantage for promotion of their products in the world market.

It is possible that Yen will reach the level of 110.00 by the end of the summer provided that at the next meeting in April Central Bank of Japan will confirm continuation of the soft policy. The USA has chosen a different way, continuing to reduce assets purchase program, making the USD more attractive for investments. Note the difference between interest rates of the two countries. In Japan the rates are much lower than in the USA, which adds attractiveness to Japanese currency.

Levels of support and resistance

The nearest resistance level is 102.52 – upper limit of the trading channel.

Support level is 101.20 – bottom limit of the trading channel.

Trading tips 

It is recommended to open long positions after breakdown of the level of 102.60 with protective orders at 102.20 and a target of 104.60

 

Dmitry Agurbash

Analysts of LiteForex Group of Companies

Thursday, 06 Mar, 2014 / 9:55

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

Trading news

 

Danone Rallies On Sale News

Selling Stake in Chinese Dairy Firm Shares in French food group Danone are [...]

Posted on Monday, 01 Mar, 2021 / 3:40 under

End of the line for the Treasury yields rally?

Markets cheered the new developments for both European and North American [...]

Posted on Monday, 01 Mar, 2021 / 1:26 under

Gold Looking Awfully Weak

By Dmitriy Gurkovskiy, Chief Analyst at RoboForex   On February 26th, the [...]

Posted on Monday, 01 Mar, 2021 / 11:34 under