USD/JPY Forecast: Strong selling pressure around 119.10

USD/JPY 17th April, 2015

USD/JPY fell again after testing strong resistance around 120.80 level, it moved back and forth during the last 2 weeks but, this time moves were not easy and the trend was not clear. Although, the same inner voice I’ve talked about in this post is still telling me that uptrend will resume soon. We will stop talking about these strong resistance levels: 120.80 or 122.02 for a while till USD/JPY finds a strong support. Based on my current analysis, I can see that we have 2 strong support levels around 116.60 and 117.50.

Non-farm payroll data was a real shock for the market watchers after expecting strong numbers, the weak numbers stressed on the market worries related to the timing of the rate hike and whether the economy is ready for it or not. Over all, it is too early to judge whether this weak NFP data is just a random fall or it is a new trend for the employment in united states. We’ve to wait for April’s report.

The USD/JPY has the following major resistance and support levels:

  • RESISTANCE: 124
  • SUPPORT: 117.50

Breaking these levels in any direction will take us higher or lower.

My Daily BUY/SELL advice (50 pips stop loss applied):

  • Sell: at 119 – Take profit 118.25 (75 pips profits)
  • Buy: at 116.90 – Take Profit 117.90 (100 pips profits)
  • Buy: at 117.60 – Take Profit 119 (140 pips profits)
  • Buy: at 118.20 – Take Profit 120 (180 pips profits)

This review is valid during trading week: 20th-24th April, 2015