Source: PaxForex Premium Analytics Portal, Technical Insight
The Bank of Japan published the minutes of the December 17-18 monetary policy meeting. The only notable thing in it was that some Central Bank members pointed out a moderate weakening of the US dollar against the yen and urged to keep a close eye on the movements in the markets, including the foreign exchange market.
The Central Bank should not hesitate to soften policy if pandemic developments warranted it:
Some members believe the Bank should analyze the effects of its policy to assess its ability to meet its inflation target;
The majority believes that the evaluation of measures taken by the regulator should be based on the assumption that the current political course will continue.
USD/JPY, 30 min
Pivot: 103.72
Analysis:
Provided that the currency pair is traded below 103.90, follow the recommendations below:
- Time frame: 30 min
- Recommendation: short position
- Entry point: 103.72
- Take Profit 1: 103.60
- Take Profit 2: 103.45
Alternative scenario:
In case of breakout of the level 103.90, follow the recommendations below:
- Time frame: 30 min
- Recommendation: long position
- Entry point: 103.90
- Take Profit 1: 104.05
- Take Profit 2: 104.20
Comment:
Technically RSI shows the possibility of a downtrend during the day.
Key levels:
Resistance | Support |
104.20 | 103.60 |
104.05 | 103.45 |
103.90 | 103.30 |
USD/JPY, D1
Pivot: 103.80
Analysis:
While the price is below 104.35, follow the recommendations below:
- Time frame: D1
- Recommendation: short position
- Entry point: 103.80
- Take Profit 1: 103.10
- Take Profit 2: 102.55
Alternative scenario:
If the level 104.35 is broken-out, follow the recommendations below:
- Time frame: D1
- Recommendation: long position
- Entry point: 104.35
- Take Profit 1: 105.00
- Take Profit 2: 105.65
Comment:
RSI shows a medium-term downtrend.
Key levels:
Resistance | Support |
105.65 | 103.10 |
105.00 | 102.55 |
104.35 | 101.15 |
We also advise you to pay attention to the following currency pairs for intraday trading:
EUR/USD – sell below 1.2155 with 1.2115 and 1.2100 as Take Profit targets. Alternative scenario - if the level of 1.2155 is broken-out, you should consider buying with the targets 1.2170 and 1.2185 as Take Profit.
GBP/USD - short positions below 1.3685 with 1.3630 and 1.3610 targets as Take Profit. Alternative scenario - if the level of 1.3685 is broken-out, buy with the targets 1.3700 and 1.3720 as Take Profit.
USD/CHF - buy above 0.8865 with 0.8910 and 0.8920 targets as Take Profit. Alternative scenario - if the level 0.8865 is broken-down, sell with the TP 0.8840 and 0.8825.