Current trend
Yesterday the pair slightly corrected up after a significant fall the day earlier when their decisions on interest rates made the Bank of Japan and US Fed.
The Japanese regulator left the rate unchanged while markets expected its further cut into a negative -0.15%. At the same time, the central bank introduced a target for 10-year government bond yields, which it is going to keep around 0%. The US Fed, in its turn, also kept its monetary policy unchanged that matched expectations of the majority of experts.
In addition, the Yen was supported by strong data on the Nikkei Manufacturing PMI that came out today in Japan. In September, the index grew from 49.5 to 50.3 points while economists forecasted a decline to 49.3 points.
Support and resistance
Bollinger Bands on the daily chart is moving down while the price range is widening. MACD is turning up but keeping its previous sell signal yet. Stochastic is leaving the oversold zone with a buy signal.
The indicators recommend long positions.
Support levels: 100.93 (local low), 100.67, 100.00 (psychologically important level), 99.53, 99.00 (24 June low).
Resistance levels: 101.20 (local high), 101.41, 101.73, 102.00 (local high), 102.26, 102.45, 102.78 (local high), 103.00, 103.18, 103.55 (6 September high), 104.00, 104.31 (2 September high), 104.82, 105.59.
Trading tips
Long positions can be opened after the breakout of the level of 101.40 (with the appropriate indicators signals) with targets at 101.94, 102.50 and stop-loss at 101.10. Validity – 2-3 days.
Short positons can be opened after the breakdown of the level of 100.70 with targets at 100.10, 99.85, 99.53 and stop-loss at 101.10. Validity – 2-4 days.
Yesterday the pair slightly corrected up after a significant fall the day earlier when their decisions on interest rates made the Bank of Japan and US Fed.
The Japanese regulator left the rate unchanged while markets expected its further cut into a negative -0.15%. At the same time, the central bank introduced a target for 10-year government bond yields, which it is going to keep around 0%. The US Fed, in its turn, also kept its monetary policy unchanged that matched expectations of the majority of experts.
In addition, the Yen was supported by strong data on the Nikkei Manufacturing PMI that came out today in Japan. In September, the index grew from 49.5 to 50.3 points while economists forecasted a decline to 49.3 points.
Support and resistance
Bollinger Bands on the daily chart is moving down while the price range is widening. MACD is turning up but keeping its previous sell signal yet. Stochastic is leaving the oversold zone with a buy signal.
The indicators recommend long positions.
Support levels: 100.93 (local low), 100.67, 100.00 (psychologically important level), 99.53, 99.00 (24 June low).
Resistance levels: 101.20 (local high), 101.41, 101.73, 102.00 (local high), 102.26, 102.45, 102.78 (local high), 103.00, 103.18, 103.55 (6 September high), 104.00, 104.31 (2 September high), 104.82, 105.59.
Trading tips
Long positions can be opened after the breakout of the level of 101.40 (with the appropriate indicators signals) with targets at 101.94, 102.50 and stop-loss at 101.10. Validity – 2-3 days.
Short positons can be opened after the breakdown of the level of 100.70 with targets at 100.10, 99.85, 99.53 and stop-loss at 101.10. Validity – 2-4 days.