Source: PaxForex Premium Analytics Portal, Technical Insight
Bank of Japan Governor H. Kuroda, during an ongoing speech in Parliament, said:
- The central bank is taking extraordinary policy easing measures that no other central bank applies;
- In particular, we are talking about buying risky assets such as ETFs;
- It is a necessary measure that should help accelerate inflation to the 2% mark;
- The Central Bank takes into account that an excessive decline in yields at the far end of the curve could harm the economy;
- The Central Bank will consider the side effects of its monetary policy and the risks of financial imbalances;
- The potential impact of a growing number of new strains of the virus should be monitored closely, although Japan's overall economy is improving thanks to a strong global economic recovery.
USD/JPY, 30 min
Pivot: 109.34
Analysis:
Provided that the currency pair is traded below 109.50, follow the recommendations below:
- Time frame: 30 min
- Recommendation: short position
- Entry point: 109.34
- Take Profit 1: 109.15
- Take Profit 2: 109.00
Alternative scenario:
In case of breakout of the level 109.50, follow the recommendations below:
- Time frame: 30 min
- Recommendation: long position
- Entry point: 109.50
- Take Profit 1: 109.65
- Take Profit 2: 109.80
Comment:
Technically RSI shows the possibility of a downtrend during the day.
Key levels:
| Resistance | Support |
| 109.80 | 109.15 |
| 109.65 | 109.00 |
| 109.50 | 108.85 |
USD/JPY, D1
Pivot: 109.38
Analysis:
While the price is below 109.70, follow the recommendations below:
- Time frame: D1
- Recommendation: short position
- Entry point: 109.38
- Take Profit 1: 108.30
- Take Profit 2: 107.50
Alternative scenario:
If the level 109.70 is broken-out, follow the recommendations below:
- Time frame: D1
- Recommendation: long position
- Entry point: 109.70
- Take Profit 1: 111.00
- Take Profit 2: 112.20
Comment:
RSI shows a medium-term downtrend.
Key levels:
| Resistance | Support |
| 112.20 | 108.30 |
| 111.00 | 107.50 |
| 109.70 | 106.10 |
We also advise you to pay attention to the following currency pairs for intraday trading:
EUR/USD – buy above 1.2120 with 1.2170 and 1.2185 targets as Take Profit. Alternative scenario - if the level 1.2120 is broken-down, sell with the TP 1.2100 and 1.2080.
GBP/USD - long positions above 1.4070 with 1.4125 and 1.4145 targets as Take Profit. Alternative scenario - if the level of 1.4070 is broken-down, sell with the targets 1.4050 and 1.4035 as Take Profit.
USD/CHF - sell below 0.9035 with 0.9000 and 0.8980 as Take Profit targets. Alternative scenario - if the level of 0.9035 is broken-out, you should consider buying with the targets 0.9050 and 0.9065 as Take Profit.
