USD/JPY | US Dollar to Japanese Yen Trading Analysis

Source: PaxForex Premium Analytics Portal, Technical Insight

As the head of the Central Bank of Japan, H. Kuroda said during an ongoing speech in Parliament:

• Foreign exchange rates are determined by a variety of factors;
• In recent years, the yen, dollar, and euro have shown stability;
• It is due to the course of monetary policy of the Bank of Japan, the Fed, and the ECB to achieve inflation within 2%;
• It is difficult to explain the yen's rapid rise in 2011 by the monetary base gap of Japan and other economies alone;
• The yen as a safe-haven currency tends to rise in moments of market turbulence; good thing that's not the case now;
• The current rise in Treasury yields is a reflection of optimism about economic recovery, but the COVID-19 situation remains the biggest risk factor for the outlook;
• The Central Bank is keeping a close eye on the forex situation as it affects the economy and prices.

USD/JPY, 30 min

Pivot: 109.08

Analysis:

Provided that the currency pair is traded above 108.90, follow the recommendations below:

• Time frame: 30 min
• Recommendation: long position
• Entry point: 109.08
• Take Profit 1: 109.35
• Take Profit 2: 109.45

Alternative scenario: 

In case of breakdown of the level 108.90, follow the recommendations below:

• Time frame: 30 min
• Recommendation: short position
• Entry point: 108.90
• Take Profit 1: 108.75
• Take Profit 2: 108.60

Comment:

Technically RSI shows the possibility of an uptrend during the day. 

Key levels:

USD/JPY, D1

Pivot: 109.04

Analysis:

While the price is above 107.00, follow the recommendations below:

• Time frame: D1
• Recommendation: long position
• Entry point: 109.04
• Take Profit 1: 110.00
• Take Profit 2: 111.35

Alternative scenario:

If the level 107.00 is broken-down, follow the recommendations below:

• Time frame: D1
• Recommendation: short position
• Entry point: 107.00
• Take Profit 1: 106.10
• Take Profit 2: 104.90

Comment:

RSI shows a medium-term uptrend.

Key levels:

We also advise you to pay attention to the following currency pairs for intraday trading:

EUR/USD – sell below 1.1920 with 1.1880 and 1.1865 targets as Take Profit. Alternative scenario - if the level 1.1920 is broken-out, buy with the TP 1.1935 and 1.1950.
GBP/USD - long positions above 1.3870 with 1.3925 and 1.3950 targets as Take Profit. Alternative scenario - if the level of 1.3870 is broken-down, sell with the targets 1.3850 and 1.3830 as Take Profit.
USD/CHF - buy above 0.9240 with 0.9285 and 0.9300 as Take Profit targets. Alternative scenario - if the level of 0.9240 is broken-down, you should consider selling with the targets 0.9230 and 0.9215 as Take Profit.