On Thursday, the yen reached new high against the US dollar, having strengthened to 111.00.
The Japanese currency has been growing due to extremely weak demand for risky assets which is getting even lower amid macroeconomic releases and statements made by the Heads of the Fed and ECB.
In particular, during a recent press-conference, Fed’s Chair Janet Yellen noted that the US economy is facing some serious risks due to which the Regulator might have to shift into ‘”wait-and-see” mode.
Moreover, the yen is getting support from speculation the Bank of Japan might intervene to halt the currency’s rapid growth.
Bollinger Bands indicator on the daily chart is directed down. The price range is widening, but the price remains near the lower MA. MACD is keeping its strong downward trend. Stochastic is in the oversold zone and trying to turn up.
According to Bollinger Bands and Stochastic, an upward correction is possible in the short-term. It is recommended to wait for clearer trading signals.
Support levels: 112.00, 110.97 (low since end of October 2014).
Resistance levels: 113.00, 113.50, 113.85, 114.20 (10 February level), 115.00, 115.56, 116.00.