The pair continues falling amid increasing anxiety on the market due to an upcoming referendum on UK’s membership in the EU, which is forcing investors to switch into safe-haven assets, such as the Yen. In addition, the Yen was supported by the decision by the Bank of Japan not to expand its stimulus program despite low and weak growth of the world economy.
The pair was also pressured by poor data from the US, where the Consumer Price Index in May grew by only 0.2% that was worse than expectations, while Initial Jobless Claims increased from 264 to 277 thousands, against forecasted 270 thousands.
Support and resistance
on the is moving down while the price range is narrowing. is falling and giving a sell signal. is trying to turn up near the border of the oversold zone.
The indicators recommend waiting for clearer trading signals.
Support levels: 104.34 (local low), 104.00, 103.74, 103.54 (local low).
Resistance levels: 104.82 (local high), 105.19, 105.54, 106.00, 106.39 (15 June high), 106.71, 107.25 (10 June high), 107.89 (7 June high), 108.22.
Long positions can be opened after the breakout of the level of 104.82 (with the appropriate indicators signals) with targets at 106.00, 106.39, 106.71 and stop-loss at 104.34. Validity – 2-3 days.
Short positions can be opened after the breakdown of the level of 104.00 with the target at 103.00 and stop-loss at 104.50. Validity – 2-3 days.
You can choose any language on our site