General analysis USDJPY for 28.02.2022
28.02.2022 15:34
MInggu
Umum
Current Dynamics
Today at the opening of trading the currency pair USD/JPY opened with a gap below Friday's closing trading session. However, in the first minutes of trading, the price returned to the closing level.
Friday's Durable Goods Orders (MoM) (Jan) in the U.S. were better than analysts' expectations, showing growth at 0.7% instead of 0.4%. However, Pending Home Sales (MoM) (Jan) in the US were worse than analysts' expectations, showing a decline of -5.7% instead of growth of 1.0%.
This morning Japan Industrial Production (MoM) (Jan) came in lower than analysts' expectations at -1.3% when experts expected a decline of -0.7%. However, Japan's retail sales (y/y) data (Jan) showed positive dynamics and growth of 1.6% instead of the expected 1.4%.
Despite contradictory economic data in the region, risks of geopolitical instability caused by China's actions against Taiwan are growing. Former Japanese Prime Minister Shinzo Abe appeared on Fuji TV and called on the U.S. to clarify the situation around Taiwan, namely whether the U.S. would defend Taiwan in the event of a Chinese invasion. Abe recalled that an emergency situation in Taiwan could be extremely dangerous for Japan because if China decided to assert its air superiority over a vast area, it could risk affecting Japanese airspace.
Today at 3:30 p.m. (GMT+2), the U.S. will release news on the foreign trade balance (Jan) and retail inventories excluding automobiles (Jan). The trade balance (Jan) is expected to be -99.60B.
Support and resistance levels.
- Support levels: 115.37, 115.14, 114.86, 114.40
- Resistance levels: 115.59, 115.88, 116.33
Trading scenarios
- Long positions can be opened from the level 115.37 with targets 115.88 and stop-loss 115.14. Time frame: 1-2 days.
- Short positions can be opened from the level of 116.33 with targets 115.88, 115.59, and stop-loss 116.80. Time frame: 1-3 days.