Japanese Yen caught in the “Triangle”

The Japanese Yen rate continues to be traded inside the pattern of “Triangle” at the Forex currency market on Wednesday. Upper boundary of the figure passes through the level of 82.50; while bottom boundary has reached the level of 81.30.

Forex forecast: it is expected that the currency pair will reach new levels; however the side of a breakdown has not been determined yet. The levels of 82.50 on the top and 81.30 on the bottom are of importance.

Forex analysis: Ichimoku indicator is giving a signal of the long term downward trend, quotes for the pair are below “Ichimiku clouds”, which indicates the dominance of sales in the pair, which has been observed since QIII last year.

Forex recommendations: a priority-  is the reduction of quotes to the level of 82.00, and further to 81.50. Currency pair will try to reach the bottom area of the pattern “Triangle”. If you keep a Long, it is recommended to set a Stop at the level of 81.20, (below the key support level at 81.30). The target of growth is at 83.00. If it is a deal aimed at reduction, the target is 80.25, and we recommend to set a Stop at 82.70.

The Japanese Yen received fundamental support from the macro economic statistics. According to the data released today, current account balance in Japan increased by 30.5% y/y in December, to the level of +Y1.195 trillion. Maintenance of stability in economy is the most important magnet for investors, who transfer their assets into Japanese currency. As it became known this morning, level of corporate bankruptcies in Japan reduced by 5.52% m/m in January, to the level of  1041. Reduction of bankruptcies and growth of the balance of payment surplus of the country are the indications of the national currency consolidation.

 

 

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