18, August 2016

USD/JPY (a 4-hour chart)

General overview

Today during the Asian session, the USDJPY has successfully implemented our yesterday's forecast. The pair pulled back to JPY100.77 and further to the area of 101.14, where stops and limits got triggered to lead USDJPY back to JPY100.74. In addition to the US dollar gains caused by Dudley speaking, the Japanese currency has been weakened by Japan Minister who said that financial authorities are ready to intervene if the exchange rate levels will be inappropriate.

Trading recommendations

According to our forecasts, this market will be trading around the 100.77 level and within the limits JPY99.90-JPY101.67 range for some time. The negative downward trend is intact.