USD/JPY: asset decline stopped at 139.00 – Analytics & Forecasts – 16 November 2022

Present pattern

The decline of the USD/JPY pair stopped at 139.00 in opposition to the backdrop of Japan’s publication of detrimental macroeconomic statistics.

The Q3 gross home product (GDP) knowledge confirmed a detrimental pattern: the indicator reached 1.2% YoY, worse than analysts’ expectations, which assumed development to 1.1% and decreased by 0.3% QoQ, under the forecast of a rise to 0.3%. One other detrimental issue for the nationwide foreign money was the decline in industrial manufacturing in September to –1.7% in opposition to expectations of –1.6% and the earlier worth of three.4%. Service PMI additionally accelerated the detrimental dynamics to –0.4%, though analysts anticipated development by 0.6%. Thus, the detrimental indicators of the Japanese economic system hold the buying and selling instrument from additional decline.

At the moment, buyers’ consideration will likely be targeted on the publication of statistics on industrial manufacturing within the US: if the figures are higher than anticipated, then the greenback will in all probability proceed to strengthen.

Assist and resistance

The long-term pattern stays upward. In the mean time, market individuals are testing the important thing pattern help at 139.00, if it holds, a brand new upward impulse will start with the goal at 145.50, and in case of a breakdown, the pattern will change downwards with the targets at 135.90 and 132.20.

The medium-term pattern is downwards. Final week, the quotes broke the goal zone 2 (142.41–141.97), and the subsequent goal is zone 3 (137.55–137.10), whereas the pattern line shifted to 143.02–142.53. In case of worth correction on this space, brief positions with the goal on the present week’s low, round ​​137.70, will grow to be related.

Resistance ranges: 140.50, 145.40.

Assist ranges: 135.90, 132.20.

Quick positions could also be opened under 140.50 with the goal at 135.90 and cease loss round ​​141.80. Implementation interval: 7–10 days.

Lengthy positions could also be opened above 141.80 with the goal at 145.50 and cease loss round 140.30.