USD / JPY: the demand for dollar rises

Current trend

As expected, after the corrective movement to
the lower boundary of the rising dollar again hurried up range. At the end
Last, and in the first half of the week the pair prevailed
"bull" mood. Within a few days the pair scored more than 300
points and reached the resistance level of 124.00. The growth in demand for the yen as the
safe haven was followed by a decrease, which was the main catalyst
strengthen pair. It should be noted that at the lower boundary of the rising range
120.60 volume of long positions has risen sharply: at that point, investors again
We began to open positions in carry trade operations.

In addition, the strengthening of the dollar considerably affected the possibility
tightening of monetary policy in the coming months. yesterday the US
currency was supported by indicators of industrial production and PPI
manufacturers.

Today should pay particular attention to speeches by the President
Fed's Janet Yellen, as well as data on the labor market.

Support and resistance levels

We look forward to comments and specific signals from Janet Yellen
on the future monetary policy of the US Federal Reserve. even minor
hint at the possibility of tightening could trigger a rise in demand for the dollar.

In the medium term it is expected to increase the demand
for the US currency and as a result, growth of the pair to the recent local
maxima 125.00, 125.70, with the breakdown and movement to the upper border
uplink 127.00. Trading indicators confirm continuation
an upward trend.

Support levels: 123.60, 123.00, 122.60, 122.45, 121.30,
120.60, 120.00, 118.65, 118.30.

Resistance Levels: 124.00, 124.30, 125.00, 125.70,
126.25, 127.00.

trading recommendations

In this situation actually increase long positions,
but should take into account that the couple had already fulfilled most of the ascending wave and
that in this case might be a slight correction.

With the expectation of a downward correction and further growth,
the best point of entry is a pending long positions at the level of 123.00 with
profit-taking at the level of 125.70 and stop loss at 122.20. If the price
overcomes the level of 124.30, unable to open the pending order to be removed.