USD/JPY: the pair is being corrected
Current trend
This Thursday the pair USD/JPY has hit the highs at 103.90. Weakening of the Yen was determined by US positive Retail Sales stats, the numbers exceeded the forecasts and reached the level of 0.7%. Dollar is also supported by the possibility of QE3 program curtailment, which may be announced at FOMC meeting next week. Today the pair is being corrected due to the increase of Japanese Industrial Production index. However, the rise of the Yen won’t be long, Japanese economy still has got a lot of problems.
Support and resistance
We expect the pair to pull back down to the levels of 103.30 and 103.00 (middle MA of Bollinger Bands), and then return to rise to the new highs around 103.90. Bollinger bands show a divergence, confirming upward trend. MACD histogram is in positive zone, its volumes are also in divergence with the price chart. Stochastic lines have crossed in overbought zone and are directed downwards.
Trading tips
Short positions can be opened at current price with targets around 103.30. At the levels of 103.30 and 103.00 pending buy orders can be placed.
Dmitriy Zolotov
Analyst of LiteForex Group of Companies
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GBP/USD: general analysis
Current trend
Marco-economic indicators in the UK continue to grow, supporting the Pound rate. National statistics shows that trade deficit fell to 9.7 billion pounds. One of the reasons of improvement in the index is the growth of output in manufacturing industry, which has reached the level of 0.4%. Indices of industrial sector are high as well: production volumes increased to the level of 3.2% on annual basis.
However, the risks for all currencies, including the Pound are high, as next week the US Fed can adopt the decision to reduce quantitative easing programs. Sudden movement at Forex market is not expected until 17 December.
Support and resistance
The Pound had reached annual highs of 1.6460 pounds and shifted to the smooth correction, trading in the range of 1.6375-1.6350. The nearest support level is the lower limit of the trading channel (1.6305). If this level is broken down the movement can reach the level of 1.6178. Resistance level is 1.6460.
Trading tips
It is recommended to open short positions below support level of 1.6305 with stop-loss near 1.6335 and a target of 1.6170.
Dmitry Agurbash
Analysts of LiteForex Group of Companies-
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