Source: PaxForex Premium Analytics Portal, Technical Insight
Japan's economy minister, Y. Nishimura said the national economy is showing signs of recovery:
Revision to reduce capital expenditures has worsened the situation in the corporate profits segment and increased uncertainty about forecasts;
Corporate spending indicators are showing signs of adaptation to a "new lifestyle";
Household income is growing, so the economy should continue recovery.
These positive comments were made shortly after the release of depressing data on Japan's GDP, which reflected a 28.1% contraction in the economy in the 2nd quarter against a preliminary estimate of 27.8%.
USD/JPY, 30 min
Pivot: 106.26
Analysis:
Provided that the currency pair is traded above 106.10 follow the recommendations below:
- Time frame: 30 min
- Recommendation: long position
- Entry point: 106.26
- Take Profit 1: 106.40
- Take Profit 2: 106.55
Alternative scenario:
In case of breakdown of the level 106.10, follow the recommendations below:
- Time frame: 30 min
- Recommendation: short position
- Entry point: 106.10
- Take Profit 1: 105.95
- Take Profit 2: 105.80
Comment:
Technically RSI shows the possibility of an uptrend during the day.
Key levels:
Resistance | Support |
106.70 | 106.10 |
106.55 | 105.95 |
106.40 | 105.80 |
USD/JPY, D1
Pivot: 106.01
Analysis:
While the price is below 108.15, follow the recommendations below:
- Time frame: D1
- Recommendation: short position
- Entry point: 106.24
- Take Profit 1: 104.15
- Take Profit 2: 102.40
Alternative scenario:
If the level 108.15 is broken-out, follow the recommendations below.
- Time frame: D1
- Recommendation: long position
- Entry point: 108.15
- Take Profit 1: 109.65
- Take Profit 2: 111.20
Comment:
RSI shows a medium-term downtrend.
Key levels:
Resistance | Support |
111.20 | 104.15 |
109.65 | 102.40 |
108.15 | 101.15 |
We also advise you to pay attention to the following currency pairs for intraday trading:
EUR/USD – sell below 1.1830 with 1.1790 and 1.1780 as Take Profit targets. Alternative scenario - if the level of 1.1830 is broken-out, you should consider buying with the targets 1.1850 and 1.1865 as Take Profit.
GBP/USD - short positions below 1.3195 with 1.3100 and 1.3060 targets as Take Profit. Alternative scenario - if the level of 1.3195 is broken-out, buy with the targets 1.3235 and 1.3270 as Take Profit.
USD/CHF - buy above 0.9140 with 0.9200 and 0.9220 targets as Take Profit. Alternative scenario - if the level 0.9140 is broken-down, sell with the TP 0.9120 and 0.9100.