We can try selling the pair today.
Today we would take a look at the USD/JPY currency pair. The price has retreated from the highs registered at the beginning of October and is holding steady within a channel between 111.64 and 112.88.
The American dollar has shaken off any of the slight weakness experienced days ago and has strengthened once again. This is based on positive fundamental reports about the U.S. economy, as well as a confirmation from the most recent Federal Reserve publications that the central bank remains committed to their hawkish monetary policy. Despite President Trump’s criticism of interest rate hikes, the Fed will increase rates once again in December and are planning around 3 hikes in 2019, in accordance with market needs. Today we expect important data on trade in the US for September, which will likely affect the American dollar.
Meanwhile, the Japanese yen remains under the influence of other currencies. The Bank of Japan is continuing with their quantitative easing scheme which is aimed at boosting the economy and moving it further away from its state of near-recession. Because of this, the yen lacks incentives for growth.
In terms of the daily chart today we have a pivot point for the USD/JPY pair located at 112.24, with the pair currently trading slightly above it. The daily resistance levels lie at 112.50 and 113.00. In case the yen strengthens, look to the supports at 111.74 and 111.48. The indicators of technical analysis are showing us mixed signals, but lean towards a sell recommendation today.
