USD/JPY: THE PRICE IS APPROACHING THE NEXT RESISTANCE LEVEL OF 155.50
| Scenario | |
|---|---|
| Timeframe | Weekly |
| Recommendation | SELL LIMIT |
| Entry Point | 155.50 |
| Take Profit | 151.80 |
| Stop Loss | 156.55 |
| Key Levels | 146.17, 146.74, 150.77, 151.80, 155.50, 159.72 |
| Alternative scenario | |
|---|---|
| Recommendation | BUY STOP |
| Entry Point | 156.60 |
| Take Profit | 159.72 |
| Stop Loss | 155.50 |
| Key Levels | 146.17, 146.74, 150.77, 151.80, 155.50, 159.72 |
Current trend
The USD/JPY pair is trading at 154.90, poised to extend gains and test the June 1990 high of 155.50 ahead of inflation data and the Bank of Japan meeting on Friday.
In April, the Tokyo metropolitan region’s consumer price index is expected to be 2.6% YoY, the same as before, while the core rate could fall to 2.2% from 2.4%. If the indicators exceed preliminary estimates, a new interest rate hike is likely at one of the next regulator meetings, which will support the yen. Meanwhile, according to the Nikkei publication, Bank of Japan officials at the meeting will discuss the rapid depreciation of the national currency, and if they decide to support it through interventions, the USD/JPY pair may quickly correct to the area of 151.80–150.77.
The American dollar is rising with the support of strong macroeconomic data. The March new homes sales increased by 8.8% MoM, exceeding the forecast of 2.7%. Today at 14:30 (GMT 2), durable goods orders will be published, which is expected to rise by 2.5% in March, supporting the currency.
Support and resistance
The long-term trend is upward: after the consolidation above the area of 151.80–150.77, growth continues to 155.50, after consolidation above which the next growth target will be 159.72, and in the event of a reversal at 155.50, a correction, with the target at 151.80–150.77 is likely.
The RSI indicator (21) entered the overbought area, indicating the possibility of a downward correction in the medium term.
The medium-term trend is upward: last week, the quotes broke through zone 3 (154.17–153.69) and headed to zone 4 (159.28–158.77). In the event of a correction to the trend support area of 150.13–149.68, long positions, with the target at the current week’s high of 154.88 are relevant.
Resistance levels: 155.50, 159.72.
Support levels: 151.80, 150.77, 146.74, 146.17.
Trading tips
Short positions may be opened from 155.50, with the target at 151.80 and stop loss 156.55. Implementation time: 9–12 days.
Long positions may be opened above 156.55, with the target at 159.72 and stop loss 155.50.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
FOLLOWME Trading Community Website: https://www.followme.com
Hot
No comment on record. Start new comment.