Current trend

Last week, the USD/JPY pair corrected to 151.80, and experts believe that the reason for the strengthening of the yen is likely intervention from the Bank of Japan, which, however, is indirectly confirmed by macroeconomic statistics. Thus, the regulator’s current account reflects that almost 60.0B dollars could be allocated to support the national currency. Before the intervention in the market situation, the USD/JPY pair reached 34-year highs near 160.00 and, as a result of the actions of the monetary authorities, retreated from them to 151.80. Analysts do not exclude new interventions, so in the medium term, the asset may increase its decline.

The long-term trend remains upward: last week, the price reached the support area of 151.80–150.77, from where it is likely to rise to 155.50, after consolidating above which the next target will be 159.15. If the support area of 151.80–150.77 is overcome, the trend will change downwards, with the target at 146.75.

The medium-term trend changed downward last week when the quotes broke through the key support area of 155.05–154.57 and headed towards zone 2 (150.20–149.75). In the event of a correction to the border of the new trend 157.30–156.81, short positions, with the target at last week’s low of 152.05 are relevant.

Support and resistance

Resistance levels: 155.50, 159.15.

Support levels: 151.80, 150.77, 146.75.

Trading tips

Short positions may be opened from 155.50, with the target at 151.80 and stop loss 156.70. Implementation time: 9–12 days.

Long positions may be opened above 156.70, with the target at 159.15 and stop loss 155.50.