The decline of stock markets for the past two days led to stabilizing of the Yen against the Dollar. Hesitation in the movement this week was marked by several volatile candles. The currency pair found resistance at 90.90, which corresponds with downwards pressure from SMA indicator. On the weekly chart clearly visible the consolidation area 86.64 - 91.27. Trading is within the above range for the last 7 weeks, meaning that the time for break out approaches. Many traders believe that the Yen is overvalued, with the potential for a weakening. Which could coincide with interventions by the BOJ to reduce the strong Yen negative effect on the economy. Short term supports are represented by the level 88.85, followed by 86.80. Immediate resistance is 90.35 followed by 91.55.
Technical resistance levels: 90.60 91.70 92.80
Technical support levels: 88.85 88.00 87.05
Trading range: 89.35 - 90.00
Buy at 89.47 SL 89.17 TP 89.87
Already made +3 pips profit on USD/JPY today from the following signal:
5:49 GMT Sell USD/JPY at 89.38 SL 89.64 TP 88.88 exited at 5:50 GMT.
Total today +137, yesterday +168, as shown at www.zifx.com/performance.php