Despite the currency intervention by Bank of Japan on Friday, the exchange rate of yen remains in the area of the minimum values and at the moment it trades at 148.84.
The central bank management refuses to admit the intervention in the currency market, but says it is possible in "an emergency case". Experts believe that the level of 150 will be a critical point for USD/JPY, reaching which will make Bank of Japan to go to active purchases of dollar.
Nevertheless, the efforts of the regulator have only short-term effect on the rate of the yen.
The dollar index remains in the area of 112.00. Investors were disappointed by yesterday's release of the business activity index for October. The index declined from 52.0 to 49.9 points in the manufacturing sector, from 49.3 to 46.6 points in services sector. The statistics proves the development of economic recession in the United States.
Forex Technical analysis USD/JPY
h the intervention of the Bank of Japan in forex trading, it is difficult to be guided by technical indicators. Nevertheless, the Alligator's mean streak remains spread out towards growth, the awesome oscillator indicator is in the positive range, but it is forming bearish bars.
Taking into account the risks of currency intervention, purchases should be opened only after the pair has consolidated above the key level of 150.00. The next target for the "bulls" is 152.50. Protective stop is at 149.00.
The signal to short positions will be fixation of the price below 147.80. Nearest target is 145.30. Stop-loss is placed at 149.00
If you are interested in USD/JPY analytics, we recommend you to visit the analytics page, where you can find the latest analytics on Forex from top traders from all over the world. These analytics will be useful both for beginners and professional traders. The Forex signals service makes it much easier for beginners to make their first steps in trading on the financial markets. The latest USD/JPY forecasts and signals contain support and resistance levels, as well as stop-loss levels.