Technical Analytics Report

USD/JPY Technical Analysis Report 29 Dec 2021

USD/JPY for the present scenario:  

 

The US dollar is stabilizing about 115.00 against the Japanese yen.

 In Asian trading, The US dollar is trading at zero against the Japanese yen, hovering near local highs from November 26 and significant psychological resistance around 115.00.

Due to the Christmas holidays, investor activity is still low; however, Japan issued excellent macroeconomic data the day before, which traders should pay attention to.

In November, the volume of industrial production in the country increased by an unexpectedly high 7.2 percent, compared to 1.8 percent, while analysts’ preliminary projections predicted a 4.8 percent increase. Sales increased by 5.4 percent on an annualized basis after falling by 4.1 percent the month before, despite experts expecting negative dynamics to persist at -5 percent. It should be noted that the country’s unemployment rate jumped from 2.7 percent to 2.8 percent in November, which was going against the average market momentum.

Support and Resistance

In the D1 figure attached below, the Bollinger Bands show steady growth. The price range widens from the previous level, implying that “bullish” potential may
prevail shortly.  

The MACD indicator also increases, indicating a relatively strong buy signal (the histogram is above the signal line). After reaching the level of “100,” the stochastic reverted to the horizontal plane, indicating a highly overbought USD in the ultra-short-term.

usdjpy


115.00, 115.50, 116.00, 116.50 are resistance levels.  

114.50, 114.00, 113.50, 113.00 are support levels.


Advice on trading

 The breakout of 115.00 might be used to open long trades with a target of 116.00. 114.50 is the stop-loss level. Time to implement: 2-3 days.  

A break of 114.50, followed by a rebound from 115.00 as resistance, could signal new sales
with the target at 113.50. 115.00 is the stop-loss level.