USD / JPY - market forecasts and trade recommendations

Despite the weakening of the dollar index, the US currency continues to hold quite confidently against the Japanese yen. The decision of the Bank of Japan, which was held on Tuesday morning, has already been fully played by the market and now news from the US are the main drivers of the price movement for this currency pair.

Yesterday's decision by the Fed to keep the interest rate unchanged had a slight effect on this currency pair. Much of today will just depend on Trump's decision to appoint a new head of the US Federal Reserve, since no other important macroeconomic data is expected from either Japan or the US.

The technical picture now implies consolidation for the breakthrough the strategic resistance level at 114.08-114.30. Most likely, before the decisive assault, we will see another USD / JPY pullback with the target of 113.20. This is the third approach of the market this year to this level. Well, this is a strategic scale and long-term goals.

On a smaller scale, after a false breakdown at 113.30, we see a steady growth of the pair, but now the price rested on the upper bound of the trading range 113.30-114.20 which the bulls must now go through to continue the current trend.

The indicators signal us about a possible pullback of the price down. Therefore, in the current situation, the scenario of the continuation of trading in the range of 113.30-114.20 looks more priority, since it is quite dangerous to enter the breakdown at level 114.22 in the current situation.

Our recommendations: long on pullback in the area of ​​113.20 with target 115.30

Fort Financial Services