Forex Depth Analysis: EUR/USD

U.S. dollar certain to bounce back ahead of weakened yen

The yen gained, paring the worst monthly decline against the dollar since 1995 and the biggest drop versus the euro in eight years, on speculation exporters were taking advantage of its weakness to bring profits home. Japan's currency also strengthened for the first time in five days versus the greenback as a technical indicator showed its five-week slide was excessive.

Trading Tactics

Buy USD/JPY on signs of a bounce on pivot point.

The buying point is at 97.56; previous resistance is the take profit at 98.75; Pivot point is the stop loss at 96.74

The selling point is at 96.40; Fibonacci 61.8% is the take profit at 95.03; Fibonacci 23.6% is the stop loss at 97.33

Technical: U.S. dollar bounced on pivot point level. A move back higher could set up a test of 98.75

The following analysis is for information only; Finotec is not responsible for any decisions or misinterpretations based on the given text.

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