Daily chart: As we said in the previous analysis, USD/JPY made a bullish rebound on the support at the 99.81 level, trying to climb to the resistance at the 100.94 level. Near the bullish trend line at the level of 98.25, the pair formed a fractal, indicating that a higher low pattern could not form. If USD/JPY manages to break the resistance at the 100.94 level, it is expected to rise to the level of 100.12. On the other hand, if USD/JPY manages to break the support at the 99.81 level, it is expected to fall to the 99.00 psychological level, where the bullish trend line is drawn. The MACD indicator remains in a negative territory, it is showing weakness in the bearish trend.
H4 chart: This pair has definitely been unable to break the 200 day moving average, having bounced off the bearish trend line near the 99.58 level. Now, USD/JPY is trying to make a bullish rebound on the 200 day moving average. If the pair manages to break the resistance at the 100.50 level, it is seen to rise to the level of 101.30. Furthermore, if USD/JPY breaks the support level of 99.05, it is expected to drop to the level of 98.38. The situation is a bit complex for this pair today, so we recommend being cautious in intraday trading. The MACD indicator is in a positive territory, supporting a bullish outlook, but this is not final yet.
H1 chart: The Point of Control (POC) that is below the resistance at the 100.31 level, it is giving much strength at this level and preventing this pair from breaking resistance levels along the way. In yesterday’s session, the pair has been consolidating below that resistance, forming a possible lower high pattern. If USD/JPY manages to break the resistance at the 100.31 level, it is expected to rise to the level of 100.79, which is the 200 day moving average. On the other hand, if the pair fails to form this pattern and breaks the support at the level of 99.61, it is expected to drop to the level of 98.85. The MACD indicator is in a neutral territory, which could indicate that this pair is waiting for fundamental news from the United States, to take a clear trend for the rest of week.
Fundamental outlook: For today’s session in the United States, ADP Non-Farm Employment Change will be released at 12:15 GMT (Previous: 119K / Forecast: 171K), and ISM Non-Manufacturing PMI will be published at 14:00 GMT (Previous: 53.1 / Forecast: 53.4). This economic data could cause volatility in this pair, so we recommend being cautious in trading today.
Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the USD/JPY pair breaks with a bearish candlestick, the support level is at 99.61, take profit is at 98.85, and stop loss is at 100.39. Place buy (long) orders only if the USD/JPY pair breaks with a bullish candlestick, the resistance level is at 100.31, take profit is at 100.79, and stop loss is at 99.83.
The material has been provided by InstaForex Company – www.instaforex.com
Daily chart: As we said in the previous analysis, USD/JPY made a bullish rebound on the support at the 99.81 level, trying to climb to the resistance at the 100.94 level. Near the bullish trend line at the level of 98.25, the pair formed a fractal, indicating that a higher low pattern could not form. If USD/JPY manages to break the resistance at the 100.94 level, it is expected to rise to the level of 100.12. On the other hand, if USD/JPY manages to break the support at the 99.81 level, it is expected to fall to the 99.00 psychological level, where the bullish trend line is drawn. The MACD indicator remains in a negative territory, it is showing weakness in the bearish trend.
H4 chart: This pair has definitely been unable to break the 200 day moving average, having bounced off the bearish trend line near the 99.58 level. Now, USD/JPY is trying to make a bullish rebound on the 200 day moving average. If the pair manages to break the resistance at the 100.50 level, it is seen to rise to the level of 101.30. Furthermore, if USD/JPY breaks the support level of 99.05, it is expected to drop to the level of 98.38. The situation is a bit complex for this pair today, so we recommend being cautious in intraday trading. The MACD indicator is in a positive territory, supporting a bullish outlook, but this is not final yet.
H1 chart: The Point of Control (POC) that is below the resistance at the 100.31 level, it is giving much strength at this level and preventing this pair from breaking resistance levels along the way. In yesterday’s session, the pair has been consolidating below that resistance, forming a possible lower high pattern. If USD/JPY manages to break the resistance at the 100.31 level, it is expected to rise to the level of 100.79, which is the 200 day moving average. On the other hand, if the pair fails to form this pattern and breaks the support at the level of 99.61, it is expected to drop to the level of 98.85. The MACD indicator is in a neutral territory, which could indicate that this pair is waiting for fundamental news from the United States, to take a clear trend for the rest of week.
Fundamental outlook: For today’s session in the United States, ADP Non-Farm Employment Change will be released at 12:15 GMT (Previous: 119K / Forecast: 171K), and ISM Non-Manufacturing PMI will be published at 14:00 GMT (Previous: 53.1 / Forecast: 53.4). This economic data could cause volatility in this pair, so we recommend being cautious in trading today.
Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the USD/JPY pair breaks with a bearish candlestick, the support level is at 99.61, take profit is at 98.85, and stop loss is at 100.39. Place buy (long) orders only if the USD/JPY pair breaks with a bullish candlestick, the resistance level is at 100.31, take profit is at 100.79, and stop loss is at 99.83.
The material has been provided by InstaForex Company – www.instaforex.com
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