In Asian trading on Tuesday USD/JPY is consolidating near the level of 144.50. At the moment there is a parity of forces between the sellers and the buyers.
Last week the Bank of Japan kept interest rate in negative territory (-0.1%) and kept the yield of 10-year debt bonds near zero mark. In addition, the regulator, fearing an uncontrolled depreciation of the yen, conducted a currency intervention for the first time since 1998, the effect of which, it should be noted, was short-lived.
Inflation in Japan accelerated to 3%, which of course is lower than in the US, but for the Land of the Rising Sun is a repeat of the 2016 record.
Some support for the yen during the week was provided by macroeconomic statistics. In September the index of business activity in the service sector went up from 49.2 to 51.9 points against the forecasted decline of 49.3 points. But the similar indicator of the manufacturing sector went down from 51.5 to 51.0 points.
Durable Goods Orders report will be released today in the United States (12:30 GMT). Analysts expect the index to decline by 1.1%. The Bank of Japan will publish the minutes of its recent meeting on Wednesday.
Technical analysis for USD/JPY
The CCI indicator remains pointing upward, while the Bollinger Bands started to change to a horizontal plane.
MACD indicator remains in the positive range, but its histogram is declining towards the zero line.
Stochastic oscillator continues to rise in the middle part of the indicator window.
After a confident breakthrough of the key resistance at 145.00 we return to buying with Take Profit at 147.00. We take out a stop loss at 144.00.
In case of a rebound from 145.00 we expect breakdown and holding of the price below support at 144.00. From here we form short positions with a target at 142.00. Stop-loss is taken out at 145.00
More about USD/JPY trading
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.