The ongoing trend

The USD/JPY forex pair is correcting in an uptrend and trading at 154.63 after the US dollar strengthened.

Today, for the first time since the results of the US presidential election, Bank of Japan Governor Kazuo Ueda commented on the development of the national monetary policy amid uncertainty about further actions of the US Federal Reserve. The monetary authority noted that the regulator is ready to raise interest rates further as long as the economy remains within the forecast limits, and the key issue is the possibility of further adjustment of borrowing costs this year. About 55.0% of experts are inclined to this scenario. But the rest believe that this decision depends on the outcome of the December meeting of the US Federal Reserve. It will be held a few days before the meeting of the Bank of Japan. If the American interest rate does not change, the Japanese interest rate will be raised by 25 basis points. On the other hand, analysts fear that the negative impact on the economy will intensify due to the slowdown in China's gross domestic product (GDP) and the introduction of additional import tariffs by the administration of the new head of the White House Donald Trump, so that the Japanese monetary authorities will not adjust the parameters and the weakening of the yen will continue.

The US dollar is trading at 106.50 points on the USDX: investors are waiting for the real estate market data tomorrow at 3:00 pm (GMT 2). Analysts' forecasts do not indicate any significant negative dynamics: in October, the number of building permits issued may increase from 1.425 million to 1.440 million, while the volume of new housing construction may fall from 1.354 million to 1.340 million.

support and resistance

In the daily chart, the trading instrument corrects upwards within the trend and stays within the upchannel with the boundaries of 158.00-150.00.

The technical indicators are in a buying state: the fast EMAs of the Alligator indicator are moving away from the signal line, the AO histogram is forming correction bars in the positive zone.

Supports: 153.60, 150.70.

Resistances: 155.40, 158.30.

trading tips

Long positions are intact in case of upside movement with price consolidation above 155.40 with price target of 158.30 and stop loss at 154.00. Validity: 7 days or more.

Short positions are current in case of downward movement with price consolidation below 153.60 with price target of 150.70 and stop loss at 155.00.