The dollar recovered positions against the yen on Tuesday. The US currency broke off the negative momentum and returned to last week's levels. The session began at a price of 109.07 and the finale was set at a rate of 109.55. In the early hours the trend was bearish and the first support at 108.71 was broken after the bottom was hit at 108.45. Short-term expectations remain in favor of the dollar.
The dollar/yen was indecisive yesterday. Views are neutral in the near future. The closest resistance is seen at 109.70. A clear break above this level may take the price to a neutral zone with testing at 110.15 - 110.65. The intraday support is 108.90. A clear breakthrough under it could cause further downward pressure on testing support 108.50-107.50, which remains a good place for long positions.
On Friday, the US dollar moved to growth against other major currencies after the US Congress voted for an agreement on the parameters of the federal budget for the next two years, ending a short suspension of the government. The yen has changed insignificantly: the pair USD/JPY was trading around 108.75.
Yesterday the USD/JPY marked a 15-month low at 106.84 from where now is pulling back. Indicators on the daily chart remain in negative terriroty and had lost directional strength. Despite today’s bounce, below 108.05 the bearish bias prevails.
The Japanese bulls continue to gain positive traction and USD/JPY hit a multi month low at 105.54 today. Although the short term outlook remains bearish according to indicators on the H4, the price bounced just ahead of US opening, having a patch of macro releases to define the further movement.
The dollar recorded another sharp decline against the Japanese yen on Thursday. The session started at 107.00 and the day closed at 106.12. Once the bottom was hit at 106.03 and approached the support at 106.00, in the event of a break we would expect a test at 105.45. If it turns, the dollar will target the first resistance at 107.44.
HIGH RISK WARNING: Foreign exchange trading carries a high level of risk that may not be suitable for all investors.
Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance.
You could lose some or all of your initial investment. Do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading, and seek advice from an independent financial or tax advisor if you have any questions.
Any data and information is provided 'as is' solely for informational purposes, and is not intended for trading purposes or advice.
Past performance is not indicative of future results.