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USD JPY Technical Analysis 2609

USDJPY. Analysis of the movement


Overview of the current situation
On Thursday, 26 September, the pair USDJPY shows growth for the first time in the last 5 days, relying mainly on regular European and English players frustrations of macroeconomic statistics. However, the situation remains uncertain, and the rise of the US currency has seen the market only in terms of a short-term correction.
Macroeconomic statistics from Japan this week has been that, however, did not prevent the yen weak, but sufficient to demonstrate the sustained growth of the rest of the week. The players really like the yen, and it would be actively used as a reserve currency if not for the huge pressure from the Bank of Japan, which still may resort to further stimulate the national economy, in order to fully defeat the deflationary risks remaining in the country.
The dollar, in turn, is between a rock and a hard place. On the one hand the FED policy Outlook uncertain sound, and, on the other hand, is a growing problem of public debt with a budget crisis and a possible suspension of the normal work of the Federal Government.

Likely scenarios for future development of price movement
It is likely that the pair will demonstrate the flètovuû momentum trading. The dollar has a chance to finish the week higher, especially if tomorrow's publication of the index numbers of sentiment from the eurozone will justify not too optimistic expectations of analysts.
On Friday, 27 September, some stats will come from Japan. Among other things, the players will be interested in data on the consumer price index of Tokyo, which would help to assess the impact of the Japanese CENTRAL BANK towards the restoration of inflation in the country.
Evidence of technical indicators
The average indicator line "Bollinger bands" unfolded in the horizontal plane. Price range outlined the approximate boundary of the medium-term/short-term flat channel and no longer shows. The indicator reflects the reversal of a flat in the short term and clear signal until it generates.
MACD indicator also demonstrates a very an uncertain dynamics. The indicator is drawn out in a line, not far from ground zero, and any trade recommendations does not throw. It is recommended to wait for clarification of the situation.
And here is the Stochastic Oscillator continues to decline, despite the resumption of growth in the US currency on Thursday, September 26. The indicator recommends that hold part of the short trading plan.
Current price levels

Among the strongest levels of support can be identified: 98.90 (nearest point), 98.66, 98.30 98.00, and some others.
The next resistance are at 99.21, 99.70, 100.00 99.45, and on the other.
Trading recommendations
The possibility of opening long transactions worth considering after a certain break point 99.21, and rebound from it as support.
An alternative might be a possibility of sales on a sure break the next key support levels, for example, mark 98.30.
Posted in  on 21:16 by herman |   Edit