JustForex | Dec 13, 2018 11:22AM ET
Volatility and trading activity in financial markets is still high. The dollar index (#DX) has moved away from monthly highs. The US Inflation Report has reinforced investors' expectations that the Fed may slow down the rate of increase in interest rates shortly. In November, the US consumer price index remained unchanged. Experts predicted a growth rate of 0.1%. It should be recalled that the Fed's meeting will take place on December 19. Currently, more than 75% of financial market participants believe that the Central Bank will increase the range of key interest rates by 25 basis points to 2.25% -2.50%. The uncertainty on the trade issue between the US and China, as well as the inversion of the curve of the government bonds yield put additional pressure on the US dollar.
Let's consider the current technical pattern on the USD/JPY currency pair
Support levels: 113.150, 112.700, 112.300
Resistance levels: 113.600, 114.000
Nevertheless, we recommend opening positions from the key levels.
If the price fixes above the resistance level of 113.600, we expect further growth of the USD/JPY currency pair. The immediate goal for profit taking is the local supply zone of 114.000-114.200.
Alternative option. If the price fixes below 113.150, you need to consider selling USD/JPY. The movement is tending to 112.700-112.300.
Confirmations and entry points to the market should be looked for on lower timeframes. When tracking positions, we recommend using a trailing stop.
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Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
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