The yen exchange rate is strengthening against the euro for the seventh consecutive week, signaling a slowing of the global economic demand in the Japanese currency for hedging purposes. The yen has become stronger than 15 out of 16 majors before the reports’ release this week predicting the fall in the US home sales and a slow economic recovery in Japan in July. Anyway, concerns about the global economic growth and the uncertainty have boosted the yen purchases. Last week, the Japan's Trade Minister Masayuki Naoshima stated that the current position of the yen against the US dollar was too strong, that the currency (the yen) should be by about 6% weaker then US Dollar to help the exporters in Japan this year, the yen has consolidated to 8.3%. Meanwhile, based on the Tankan survey conducted by the Bank of Japan, Japan's manufacturing industry expects the yen to move to the range of 90.16 yens per the US dollar for six months ended March 2011.
However, here are the intraday important levels for this pair today :
Resistance. 3 : 85.86.
Resistance. 2 : 85.69.
Resistance. 1 : 85.52.
Support. 1 : 85.31.
Support. 2 : 85.14.
Support. 3 : 84.97.
Suggestions:
Scalping from 10 pips to 20 pips near the Support. 3 for BUY and the Resistance. 3 for SELL; but please, pay attention, that if this pair is still moving for 47– 50 pips after breaking through the Support. 3 or the Resistance. 3, then it is likely to continue the advance, so please, change the position beforehand.
