Our free forex signals service today looks at a trade setup for the USD/JPY. We have the entry, stop and take profits levels for you.
Bulls are trying to break the key psychological level of 110.00 during the Asian session after it rose during the Asian session and traded near daily highs.
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After finding support near 109.60-55 on Thursday, the pair attracted new purchases on Friday. With global equity markets rebounding, the Japanese yen has lost some of its safe-haven status. The impact of this, in turn, was seen as a crucial factor in the USD/JPY halting this week’s slide from its peaks of Aug 13 and 110.45.
US Treasury yields also increased moderately, which helped the dollar a little bit. The dollar also continued to benefit from expectations that the Fed will end the massive stimulus of the pandemic era sooner rather than later. A US jobs report and hawkish comments from the Fed chairman, Michelle Bowman, boosted market expectations on Thursday.
Several factors contributed to the intraday uptrend in the USD/JPY pair and to the outlook for further strength. First, upon return above the 110.00 mark, bulls will have an opportunity to challenge the upper boundary of the resistance range near the 110.20-25 supply zone from almost four weeks ago. Following this, weekly fluctuations peak around 110.45.
Now, as the market opens in North America, participants eagerly await the US PPI to get some momentum. These factors, along with the yield on US bonds, may affect the dollar’s dynamics. Although generally inclined to market risk, the USD/JPY pair may also offer some trading opportunities.
USD/JPY free forex signals
Instrument: USD/JPY
Order Type: SELL STOP
Entry price: 109.51
Stop Loss: 110.10
TP1: 108.70
Our Risk Setting: 1%
Risk / Reward Ratio: 1:1.38
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Saqib Iqbal
