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15 June 2017

USD/JPY: general review

By Kristina Leonova: Chief Analyst in the Investment Research Department

USD/JPY: general review
Yesterday FOMC announced its decision on the interest rate. Its increase by 25 basis points was not a surprise, but "hawkish" rhetorics of FOMC head in the follow-up comments was absolutely unexpected by market participants. Janet Yellen announced that the regulator planned one more increase this year. Moreover, she spoke about positive tendencies in the economy and labir market and announced plans for the reduction of the Central Bank balance by means of cutting the volume of purchased assets.
However, after Yellen's statement USD stopped growing which means market participants were suspicious about jer statements and paid more attention to macroeconomic data that shows a less favorable picture.
Today's news are mainly formed by US macroeconomic statistics. According to the specialists, the results will be mixed which may cause considerable market volatility. Taking into account sceptical attitude of the investors to USD, any valuable neative statistics may push the pair down to the local minimum of 108.00. Moreover, the Bank of Japan is to announce its decision on the interest rate tomorrow. The value of -0.1% is unlikely to change which will support the pair.
On D1 chart the pair is trading in the lower part of Bollinger Bands. The indicator is directed downwards while the price range is widening which is a ground for the continuation of the current trend. MACD histogram is in the negative zone with its volumes reducing and keeping the sell signal. Stochastic is correcting in the neutral area giving no clear signals for entering the market.
Support levels: 109.14, 108.75, 108.40, 108.05.
Resistance levels: 109.81, 110.35, 110.75, 111.20.

This website/communication is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. It has been prepared by Liteforex (Europe) Ltd (ex. Mayzus Investment Company Ltd) without taking into account any particular person's objectives, financial situation or needs. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision. Past performance is not indicative of future performance. The future value of your investment may rise and fall with the changes in the market. 
About the author
Kristina Leonova
Kristina Leonova
Chief Analyst in the Investment Research Department

Kristina Leonova is an up and coming market specialist - currently in the process of obtaining The Chartered Financial Analyst Degree in CFA Institute.

She began her career at Liteforex (ex. Mayzus) at only 20 years old, holding the position of the Assistant of the Chief Financial Officer.

She has since become invaluable to the Company, holding the position of Chief Analyst in the Investment Research Department, and now is also responsible for our world renowned market reviews.

She has a keen eye and a good gut instinct when it comes to analyzing the markets, always staying at the top of her game, with her work often being published on other websites and news vendors.

Mayzus is excited to welcome her as our new, top financial analyst.

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