Trading news

USD/JPY: the pair has the potential to grow

Currenttrend

This Monday the pair USD/JPY has been growing. The Dollar has been supported by the rise of Chine GDP indicator; it has reached the level of 7.7% exceeding forecasts. From the other hand, Industrial Production index in Japan has dropped by 0.1%. The demand of American currency is determined by the investors’ expectations of future QE3 program curtailment in USA. On the next meeting of FOMC the volume of assets purchase may be reduced by another 10 billion dollars. However, the augmentation of paid employees has slowed down to the level of 74 000 in December, and we wouldn’t be so sure about the decision on stimulative program.

Supportandresistance

From the technical analysis point of view the price is moving towards upper line of the Bollinger Bands indicator (104.80). The breakthrough of this level will open the way to the next resistance at 105.05 and 105.40 (50% level of Fibonacci lines). Otherwise, the pair will go down to middle MA of Bollinger Bands at 104.35. MACD histogram has crossed the zero line from below, forming a signal to buy. Stochastic lines have entered the overbought zone, giving the same signal.  

Support levels: 104.35, 104.07, 103.90.

Resistance levels: 104.80, 105.05, 105.40.

Trading tips

Long trades can be opened at 104.80 with targets around 105.40.

 

Dmitriy Zolotov
Analyst of LiteForex Group of Companies

Tuesday, 21 Jan, 2014 / 10:33

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

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