Source: PaxForex Premium Analytics Portal, Technical Insight
According to the Head of the Bank of Japan H. Kuroda, speaking in the National Parliament:
If necessary, the Central Bank will not hesitate to take additional measures to mitigate monetary policy;
The world economy is expected to recover, but only at a modest pace;
The Japanese economy is showing recovery as export and production indicators reflect the recovery of foreign economies;
Japan's economy will maintain a trend of recovery, but the pace will be moderate due to concerns about COVID-19;
Price risks are bearish due to the high level of uncertainty surrounding the effects of coronavirus;
It is premature to discuss the exit from the ultra-softened policy, including curtailment of government bond and ETF purchases;
At this stage, there are no intentions to revise the monetary policy of the Central Bank.
USD/JPY, 30 min
Pivot: 104.29
Analysis:
Provided that the currency pair is traded below 104.45, follow the recommendations below:
- Time frame: 30 min
- Recommendation: short position
- Entry point: 104.29
- Take Profit 1: 104.10
- Take Profit 2: 103.90
Alternative scenario:
In case of breakout of the level 104.45, follow the recommendations below:
- Time frame: 30 min
- Recommendation: long position
- Entry point: 104.45
- Take Profit 1: 104.60
- Take Profit 2: 104.75
Comment:
Technically RSI shows the possibility of a downtrend during the day.
Key levels:
| Resistance | Support |
| 104.75 | 104.10 |
| 104.60 | 103.90 |
| 104.45 | 103.70 |
USD/JPY, D1
Pivot: 104.35
Analysis:
While the price is below 105.65, follow the recommendations below:
- Time frame: D1
- Recommendation: short position
- Entry point: 104.76
- Take Profit 1: 103.10
- Take Profit 2: 102.45
Alternative scenario:
If the level 105.65 is broken-out, follow the recommendations below.
- Time frame: D1
- Recommendation: long position
- Entry point: 105.65
- Take Profit 1: 106.15
- Take Profit 2: 106.90
Comment:
RSI shows a medium-term downtrend.
Key levels:
| Resistance | Support |
| 106.90 | 103.10 |
| 106.15 | 102.45 |
| 105.65 | 101.15 |
We also advise you to pay attention to the following currency pairs for intraday trading:
EUR/USD – buy above 1.1900 with 1.1970 and 1.1990 as Take Profit targets. Alternative scenario - if the level of 1.1900 is broken-down, you should consider selling with the targets 1.1880 and 1.1865 as Take Profit.
GBP/USD - long positions above 1.3365 with 1.3435 and 1.3470 targets as Take Profit. Alternative scenario - if the level of 1.3365 is broken-down, sell with the targets 1.3335 and 1.3310 as Take Profit.
USD/CHF - sell below 0.9095 with 0.9040 and 0.9020 targets as Take Profit. Alternative scenario - if the level 0.9095 is broken-out, buy with the TP 0.9110 and 0.9130.
