With the opening of trading the USD/JPY continues to grow, approaching a new record high - the level of 149.00.
Despite the rumors about possible intervention of the Bank of Japan in forex trading, the regulator has a wait-and-see attitude. The central bank does not plan to go over to tightening of the monetary policy and to refuse from the stimulation program, but expresses extreme concern about low yen rate, as it strongly affects the prices of imported products, first of all energy resources.
Earlier, the maximum USD/JPY was fixed in 1998 at 145.00. Analysts believe that around 150.00 the Bank of Japan will need to intervene to strengthen the national currency.
Some support for the yen was provided by today's block of economic news from Japan. Industrial production rose 3.4% in August, which was better than the market forecasts.
USD/JPY Technical analysis and signals
Bollinger Bands of Daily remain in the growth phase.
MACD indicator is confidently rising in the positive range and holds a strong buy signal.
Stochastic Oscillator is in the area of maximum values.
After the pair has consolidated above 149.00 we are opening long positions towards 150.00, bearing in mind that the Bank of Japan can intervene at any time. We will place a protective stop at 148.00.
On breakdown below 148.00 we start selling, aiming at 146.00. Stop-loss is set at 149.00.
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