Current trend
The quotes of USD/JPY have consolidated above the key support level of 112.80, which may become a driver for further uptrend to the November highs around 115.40. The instrument is growing after the publication of relatively positive statistics from the United States. Despite the fact that the Nonfarm Payrolls indicator in November amounted to 210K instead of 550K expected by analysts, together with the data on unemployment, it can be considered positive for the American economy. The Unemployment Rate fell by 0.3% to 4.2%, although preliminary market estimates suggested a reduction of only 0.1%: from 4.6% to 4.5%.
The long-term trend in USD/JPY remains upward. The target of the "bulls" is at the November high of 115.40, to reach which market participants need to overcome the nearest resistance at 114.50. The key support is at 112.80, and if it is broken down, the trend will change to a downtrend, and the target for sales will be at 111.95, a breakdown of which will open the prospects for a decline to 111.50.
The mid-term trend remains upward. The asset is trading in the area of the key support at 113.50–112.75, from which one can consider opening long positions with the target at 115.45. To change the medium-term trend to a downtrend, sellers need to break down the level of 112.75; in this case, the target for sales will be at target zone 2 (111.60–111.40).
Support and resistance
Resistance levels: 114.50, 115.40.
Support levels: 112.80, 111.95, 111.50.
Trading tips
Long positions may be opened at the current price with target at 114.50 and stop-loss at 112.43. Implementation time: 7-10 days.
Short positions may be opened below the level of 112.43 with targets at 111.50 and stop-loss at 112.80.
US Dollar vs Japanese Yen
| Buy | Sell | Spread |
| 159.156 | 159.146 | 10 |
Scenario
| Time frame | Weekly |
| Recommendations | BUY |
| Entry Point | 113.19 |
| Take Profit | 114.50 |
| Stop Loss | 112.43 |
| Support levels | 111.50, 111.95, 112.80, 114.50, 115.40 |
Alternative scenario
| Recommendations | SELL STOP |
| Entry Point | 112.40 |
| Take Profit | 111.50 |
| Stop Loss | 112.80 |
| Support levels | 111.50, 111.95, 112.80, 114.50, 115.40 |
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