Yen Falls Below Critical Long-Term Support

Yen Falls Below Critical Long-Term Support

Asian trends in forex markets have taken some surprising turns this year.  While many forex analysts initially expected to see emerging market currencies in Asia rally this year, this has not exactly been the case.  There have been some exceptions here but for the most part it is clear that most of the bullish activity has been centered on the US Dollar.  From the fundamental perspective, this is largely because the Federal Reserve in the US is widely expected to be the first major central bank to start raising interest rates.  This is not something that is expected any time soon in Asian economies, so these are trends that are likely to continue in the months to come.

From a stock perspective, this activity has given to rallies in assets like the PowerShares DB US Dollar Index Bullish ETF (NYSE: UUP) but for those looking to establish positions based on these trends, it makes more sense to pay attention to forex pairs like the USD/JPY.  To gain access to these markets, it is a good idea to focus on forex brokers that are centered on asian markets.  Once excellent choice is asia forex broker Juno Markets, which has a good deal of forex research that is focused on the region.  It is important to have access to this type of information when placing these types of trades because the reports are likely to garner data from sources closest to the fund activity that dictates the trend moves that are ultimately seen in the broader markets.  Next, we will outline some of the best support and resistance levels that can be used by those looking to trade in the USD/JPY.

USD/JPY – US Dollar vs. Japanese Yen

Critical Resistance:   125.80

Critical Support:   118.50

Trading Stance:  Bullish

 

USD/JPY Forex Strategy:  Prices have broken out of the yearly trading range in the USD/JPY and this suggests bullish momentum for the rest of this year.  Initial support now comes in at 118.50, and this level can be used to establish new buy positions.

The USD/JPY is now powering ahead in a strong fashion after prices broke through the trading range that defined chart activity most of this year.  When periods of consolidation break like this, we start to expect momentum to build in the direction of the break.  This ultimately suggest that we will see continued weakness in the Japanese Yen in the coming weeks and months.  For those that are looking to enter into bullish positions in the USD/JPY one key level to watch now comes in at 118.50 which is an important area of historical support.