Forex Depth Analysis: USD/JPY

Yen in trouble as U.S. dollar looking to recover

The yen fell against the dollar, heading for its biggest quarterly loss since 2001, on speculation a Bank of Japan report tomorrow will show business confidence slumped to a 30-year low. Japan’s currency declined the most in a week versus the euro on the prospect a European Central Bank policy maker speaking today will signal the bank will refrain from cutting interest rates again after lowering them next month. The yen was also poised for its first quarterly loss against the euro since June after a government report showed Japan’s jobless rate jumped to a three-year high, damping demand for the currency.

Trading Tactics

Buy USD/JPY on signs of a bounce on Fibonacci level.

The buying point is at 98.39; Pivot point is the take profit at 99.59; Fibonacci 38.2% is the stop loss at 96.78

The selling point is at 96.50; Fibonacci 61.8% is the take profit at 95.58; Fibonacci 23.6% is the stop loss at 97.62

Technical: U.S. dollar bounced on a strong Fibonacci level and breaks previous resistance. A move back higher could set up a test of 99.59

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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