USD / JPY managed to bounce from the 200 EMA at 112.90 to the 6/8 murray at 114.06. Now early in the American session, it is trading below the top in the downtrend channel and we could expect a correctional move to the 21 SMA located at 113.28.
Inflation in the US triggered expectations of a possible stronger and faster policy adjustment by the Federal Reserve. From November, there will be a cut in the bond purchases in an amount of 15,000 million dollars per month. As a result, the US dollar appreciated on all fronts, holding the upper hand over the Japanese yen. USD/JPY returning to trading at price levels of about 114.00.
As long as USD/JPY remains below the 6/8 murray line located at 114.06, we could expect a correction in the next few hours to the 200 EMA located at 112.90.
Since October 25, the eagle indicator has been oscillating within a range zone. Having found resistance at 114.06, it is giving a bearish signal, which could favor the downward correction and fall to 113.50 in the next few hours.
The market sentiment report shows that there are 69.79% of traders who are buying the USD / JPY pair. This is a positive sign and we could expect a downward movement in the coming days and the pair could reach the area of 112.50.
Below we leave the support and resistance levels for the next two days.
Support and Resistance Levels for November 11 - 12, 2021
Resistance (3) 114.84
Resistance (2) 114.32
Resistance (1) 114.10
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Support (1) 113.54
Support (2) 113.28
Support (3) 112.96
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A trading tip for USD/JPY for November 11 - 12, 2021
Sell below 114.06 with take profit at 113,28 (5/8) and 112,90 (EMA 200), stop loss above 114.40.
