• Foreign exchange rates are determined by a variety of factors;
• In recent years, the yen, dollar, and euro have shown stability;
• It is due to the course of monetary policy of the Bank of Japan, the Fed, and the ECB to achieve inflation within 2%;
• It is difficult to explain the yen's rapid rise in 2011 by the monetary base gap of Japan and other economies alone;
• The yen as a safe-haven currency tends to rise in moments of market turbulence; good thing that's not the case now;
• The current rise in Treasury yields is a reflection of optimism about economic recovery, but the COVID-19 situation remains the biggest risk factor for the outlook;
• The Central Bank is keeping a close eye on the forex situation as it affects the economy and prices.

USD/JPY, 30 min

Pivot: 109.08

Analysis:

Provided that the currency pair is traded above 108.90, follow the recommendations below:

• Time frame: 30 min
• Recommendation: long position
• Entry point: 109.08
• Take Profit 1: 109.35
• Take Profit 2: 109.45

Alternative scenario: 

In case of breakdown of the level 108.90, follow the recommendations below:

• Time frame: 30 min
• Recommendation: short position
• Entry point: 108.90
• Take Profit 1: 108.75
• Take Profit 2: 108.60

Comment:

Technically RSI shows the possibility of an uptrend during the day. 

Key levels:

Resistance  Support

109.70 108.90

109.45 108.75

109.35 108.60

USD/JPY, D1

Pivot: 109.04

Analysis:

While the price is above 107.00, follow the recommendations below:

• Time frame: D1
• Recommendation: long position
• Entry point: 109.04
• Take Profit 1: 110.00
• Take Profit 2: 111.35

Alternative scenario:

If the level 107.00 is broken-down, follow the recommendations below:

• Time frame: D1
• Recommendation: short position
• Entry point: 107.00
• Take Profit 1: 106.10
• Take Profit 2: 104.90

Comment:

RSI shows a medium-term uptrend.

Key levels:

Resistance  Support

112.20 107.00

111.35 106.10

110.00 104.90

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