USD/JPY: The Pair Can Lower
LiteForex Europe | Apr 23, 2017 01:12AM ET
On Thursday the USD/JPY pair grew and reached the level of 109.48. The investors were inspired by the results of the meeting of the Finance Ministers of the Japan and the USA; Taro Aso and Steven Mnuchin. The sides agreed that the emission monetary policy issues should be resolved by the financial experts and not the politics. The market accepted this commentary as an attempt to negate Trump’s commentaries upon the necessity of the dollar weakening and the limitation of the currency speculations by the other countries.
Today the yen is growing due to the publication of the positive Nikkei Manufacturing PMI. The April index is at the level of 52.8 points against the expected level of 52.5 points.
Technically the price is testing the level of 109.10 (the Fibonacci correction 23.6%), but it’s better to wait for the price consolidation below the middle line of the Bollinger Bands around 108.90 to open short positions, which let the price to lower to the level of 108.40 (the lower border of the Bollinger Bands) and 108.10 (the April minimum). Otherwise the price can grow to the level of 109.85, 110.15, 110.50.
The technical indicators readings are controversial. Stochastic reversed downwards, MACD histogram is near the zero line, its volumes are small. The Bollinger Bands are pointed upwards.
Support levels: 108.90, 108.40, 108.10.
Resistance levels: 109.50, 109.85, 110.15, 110.50.
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