JPY Attracts Investors As USD Looses Strength

The yen weakened against its higher- yielding counterparts as reports showing an improvement in Chinese manufacturing and Australian economic growth curbed demand for Japan's currency as a haven. The yen declined the most versus the South Korean won and the Australian dollar. The so-called Aussie approached a two- week high against its U.S. peer after the Bureau of Statistics said the economy expanded at the fastest pace in three years.

Trading Tactics

A clear downtrend could be an opportunity to sell USD/JPY.

The buying point is at 84.80; Fibonacci 23.6% is the take profit at 85.35; Fibonacci 61.8% is the stop loss at 84.50

The selling point is at 84.04; Pivot point is the take profit at 83.35; Fibonacci 50% is the stop loss at 84.70

Technical: USD/JPY forms a double top pattern and may continue the major downtrend. A move back lower could set up a test of 83.35

To strengthen our analysis; we use many other indicators, starting with MACD (Moving Averages convergence divergence); we notice MACD crosses the signal line downwards; Momentum and RSI are in a downtrend; stochastic is in a bearish direction.

*Analysis is for information purposes only and does not constitute advice in any form. Trading in financial products carries a high degree of risk to your capital and it is possible to lose more than your initial investment.