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12.01.201816:11 Forex Analysis & Reviews: Technical analysis of USD/JPY for January 12, 2018

Long-term review
This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

Exchange Rates 12.01.2018 analysis

USD/JPY is under pressure. The pair tested the support at the key level of 111.00 overnight (January 11). Currently, the pair is off that low but remains capped by the descending 20-period moving average, which stands below the 50-period one. And the relative strength index is yet to recover the neutrality level of 50, showing a lack of upward momentum for the pair.

The U.S. dollar remained on the defensive as the euro jumped 0.7% to US$1.2031 (day-high at US$1.2059) as the European Central Bank's December meeting minutes helped to boost investors' expectations that the central bank is preparing to reduce its monetary stimulus program.

Therefore, intraday bearishness persists, and the pair should sink toward 110.45 once crossing below 110.80.

Alternatively, if the price moves in the opposite direction, a short position is recommended below 111.95 with a target of 110.80.

Chart Explanation: The black line shows the pivot point. The current price above the pivot point indicates a bullish position, while the price below the pivot point is a signal for a short position. The red lines show the support levels and the green line indicates the resistance level. These levels can be used to enter and exit trades.

Strategy: SELL, stop loss at 111.95, take profit at 110.80.

Resistance levels: 112.15, 112.35, and 112.55

Support levels: 110.80, 110.45, and 110.00.

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