Forecast 09.05.2016 USD / JPY
The April data on monetary base in Japan showed a decline from earlier 28.5% y / y to 26.8%. In Japan, released the April index of business activity in the services sector by Nikkei / Markit: amounting to 49.3, against 50. The data on unemployment in the United States in April make it possible to assess whether the US economy is strong enough to be able to cope with another rise in interest rates and support the USD . Unemployment remained at 5%, in line with expectations.
Tool again a bit heavier, though, in general, trading took place in a narrow range. Quotes were noted in the six-day maximum value of around 107.40, where they met resistance and fell back, but the level of 106.60 stopped the decline. From this mark the pair grew up to the close of trading.
In the area of 106.60 is the first support below - 105.80. In the area of 107.40 is the first resistance, above - 108.20.
A sell signal is strong and confirmed. The price is below the Ichimoku cloud and Chinkou-Span is above the price level. Tenkan-sen and Kijun-sen demonstrate horizontal movement and form a "Golden Cross". The urgency of the downward movement will continue as long as the price is below the Ichimoku cloud.
Histogram MACD is in the negative zone. The price is adjusted.
Trading recommendations USD / JPY
There is a potential for further strengthening. The first target located at 107.40. The target is at 108.20 above.
Source Fort Financial Services