Opinion on USD/JPY pair

The pair of USD/JPY during the trading on Monday does not differ significantly in volatility, after a sharp increase at the beginning of the trading. It is due to the lack of significant news and any other catalysts. The growth of the pair at the opening of the trading day was due to the victory in the parliamentary elections of the ruling party Shinzo Abe. It implies that the government of Japan will continue to pursue a course of ultra-soft monetary policy.

Technical Analysis: As a result of today’s movement in a pair of USD/JPY, on the graph of H1, the reversal figure “Double Top” formed. As a result, it is worth to expect a possible price fall to levels 113,30, 113,10.

Computer analysis: On the graph H1, the “bearish divergence” is formed on the MACD indicator, which also signals a reduction in the price of the instrument.

The main recommendations: In case of a tool price and fixing it below the level of 113,60, it is worth considering the sale of the instrument for the purpose of 113,30-113,10. One should consider buying transactions from the levels of 113.30-113.10 , with the corresponding confirmatory signal of the Stochastic Oscillator on H1.

For more information about the Stochastic Oscillator trading strategy, refer to https://esterholdings.com/en/2017/05/04/torguem-s-cci-i-stochastic/

Fig. Current price of the pair USD/JPY – 113.73

Alexander Sivtsov