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USD/JPY Forecast 11 July 2014

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USD/JPY chart 11 July 2014
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USD/JPY is preparing to leap up

USD/JPY, meanwhile, continues to bear the loss, and the main reason remains is the same – decline in yields on government bonds of the United States, as well as the overall strong demand for risk-free assets. But labor market data and inconsistency of data on inflation in Japan to the Japanese central bank expectations, point to a possible increase of USDJPY pair.

We would also like to draw attention to the message that the Bank of Japan may lower its economic projections, when the next week quarterly economic review of the regulator will be published.

Traders should follow the dynamics of U.S. bond yields, they are very well correlated with USDJPY pair. 101.00 level could be a good support level, as in the past pair repeatedly rebounded from it. Thus, we are waiting for achievement of this level and buy Call options on it.

In the case of 101.15 level breakout, the decline to 100.70 for USDJPY is expected. In order to improve the prospects of U.S. dollar, the pair should overcome the resistance level at 102.20.

There is a strong resistance area at the level of 103.00 which has repeatedly limited appreciation. To the side of that resistance for 11 July we recommend buying Call options.

Disclaimer: The article is written for informative purposes only and it is not financial advice. The author does not have any position in the currency pairs mentioned, and no plans to initiate a position. He wrote the article himself and expressed his own opinions. He has no business nor personal relationships with any mentioned government entities or stocks. Readers should not treat any opinion expressed by the author as a specific inducement to make a particular trade or follow a particular strategy, but only as an expression of his opinion.

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