FXCC | USD/JPY Daily Technical Strategies 23.11.2015

FXCC | USD/JPY Daily Technical Strategies 23.11.2015

Basic Characteristics of USD JPY trading

USD/JPY trading

The yen which is the most liquid currency in the whole of Asia’s economy is also a form of proxy for the entire Asian economic growth. When instability is observed in the Asian sector, traders generally respond by selling or buying the yen as a replacement to other Asian nation’s currencies that are not as easy to trade. It is also worth mentioning that the Japanese economy registered a record period of low economic growth and relative low interest rates. When trading USD/JPY, a leading indicator of its future price direction is the Japanese economy which we must pay attention to.
Many forex circles recognize the Yen’s influential role in the carry trade. Due to Japan’s very low interest rate policy that has held for most of the 1990s to 2000s, traders borrowed the Japanese currency at a small cost and then used it to invest in other better yielding currencies. This generates benefits from the rate differentials.
Thus in the global context, the constant borrowing of the Yen proved appreciation to be a challenging task. Even so, the Yen trades with the same basic fundamentals as any other currency.
One of the dully noted major influences in the Japanese currency value is the US Dollar. This unpredictable behaviour is the reason why forex traders use technical analysis to understand the dynamic of this pair, on a long term perspective. Regular trading ranges may vary from 30 or 40 pips to as high as 150 pips.

23/11/2015

USDJPY HIGH 123.258 LOW 122.749 BID 123.217 ASK 123.223 CHANGE 0% TIME 09:10:01

OUTLOOK SUMMARY Up TREND CONDITION Upward penetration TRADERS SENTIMENT Bullish IMPLIED VOLATILITY Low

Upwards scenario: Fractals level at 123.26 (R1) offers a key resistive measure on the upside. Break here is required to enable bullish pressure and validate next target at 123.37 (R2). Final resistance today locates at 123.48 (R3) price level. Downwards scenario: On the other hand, technical readings suggest possible retest of our support level at 123.08 (S1) later on today. Break here is required to open way towards to initial targets at 122.97 (S2) and 122.86 (S3). Resistance Levels: 123.26, 123.37, 123.48 Support Levels: 123.08, 122.97, 122.86