USD/JPY opened at 101.47, after reaching a session high at 101.60, but retreated under the 101.50 area, again touching a session low at 101.42. The pair is currently trading at 101.50. USD/JPY continued to retreat from recent highs, as the current catalysts are not strong enough to make a pair of shackles.
Nevertheless, a series of mixed reports Japan deserves attention, as it may indicate that the growth of the Japanese economy is slowing after the April rate hike. Of course, it is too early to speak of a trend, but if lowering risks persist, it can cause the CB to think about additional stimulus. Then the pair has chances for growth, as said the analysts of the Forex Broker Company FBS (rated among the TOP Forex Brokers of the Masterforex-V World Academy).
Bears on the USD / JPY are trying to increase the pressure. USD/JPY stopped near 101.50, after having previously moved to a 10-pip range. Markets generally ignored data on trade balance of Japan, which mentioned worse prognosis. Despite the fact that Japanese officials can express dissatisfaction with the current rate of the yen, they are unlikely to be solved by the intervention. Not at this time. So players on JPY calm and even Japan stocks rose slightly. China posted a good performance prior PMI for July, which supported risk sentiment in the market. Next evening awaits us weekly report on U.S. labor market and new home sales, but it is unlikely these releases make USD/JPY exit range limited area above 101.70/80 and 101.20 below.
Trading recommendations for USD/JPY
Yesterday's decline hour under a cloud did not give a signal to the new sales of the currency pair. Rebounding from 101.30 support the couple returned to the positive region. Such movements should obviously be interpreted that market participants can not yet determine the further direction.
Ichimoku but bearish nature clouds at 4-th hours charts suggests resumption of the downtrend. Recall that the main purpose of the nearest bears can be a mark 100.80. It is obvious that a break-down support time clouds in 101.40/101.45 will prove impotence bulls. Therefore, these levels can be expected depreciation. Technical levels: Support - 101.30, 101.45; resistance - 101.60, 101.70, 101.80.
Key levels for USD/JPY are: Central Pivot 101.45, located below the support levels 101.35, 101.21 and 101.10 and above - resistance levels 101.59, 101.70 and 101.84. Time Moving Averages are mixed, and rolled up and 200SMA is at 101.47 and daily 20EMA rolled down and stays at 101.58. Local deployed up and RSI is at 59, as reported by experts of FBS.
Trading recommendations:
1. Sell - 101.40; SL - 101.60; TP1 - 101.00; TP2 - 100.80.
2. Sell - 101.60; SL - 101.80; TP1 - 101.00; TP2 - 100.80.
