Tuesday, April 18, 2017 02:59 PM / Meristem
On Monday, the 17th of April 2017, the dollar fell to a five-month low against the yen as pressures rose over the US-North Korea stand-off. This kept the safe-haven Japanese currency in demand as the dollar declined to 108.136 yen, its lowest since mid-November.
The USD/JPY however pulled away from its five-month low today, following comments from the U.S. Treasury Secretary, Steven Mnuchin. Steven Mnuchin told the Financial Times that he agreed with U.S. President Donald Trump's view that the dollar's strength in the short term was hurting exports, but that he saw the currency's strength over the long term as a positive development (source: www.cnbc.com).
The pair has been ranging within the channel where it has reached the resistance line and has formed a bullish candlestick confirmation (Pinbar)
· If the current bullish sentiments continue, we advise a “BUY”.
· Stop loss at the low of the candlestick (108.11).
· First profit target: 110.18
· Second profit target: 111.85.
· Third profit target: 114.94.
· If the pair break below the 108.11 with a pull back to the level, displaying a bearish candlestick confirmation, we advise a “SELL”.
· Stop loss at the high of the bearish candlestick
· Profit target at 105.28 support level
Trading Economic Calendar
A compilation of the economic activities and key data releases (high impact news) for the rest of the week is provided below (time is quoted in GMT)
Data Source: Daily FX
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