On November 30, USD / JPY fell to the price levels of October 11, when it reached a low of 112.54 just around strong support at 8/8 Murray. From that level, the yen has been rebounding and is now approaching the 21 SMA.
The growing risk aversion in the markets provided a strong boost to the Japanese yen as a safe haven. In parallel to the broad-based weakness of the US dollar (USDX), this encouraged strength of the yen. So, USD/JPY dropped to the level of 112.50.
The Japanese Yen is trading below the uptrend channel and below the SMA of 21 and the EMA of 200. This represents a positive signal for the USD / JPY pair, which could fall towards the level of 112.50 even to 110.94 (7/8).
Our trading plan is to sell below 113.68 with targets at 113.05 and up to 112.50 (8/8). A consolidation above SMA 21 located at 113.80 will be a signal to buy the yen again with targets at 115.62 (+2/8).
On November 29, the eagle indicator reached the extremely oversold level around 5 points. Consequently, the yen is expected to rise above the 21 SMA and 200 EMA located at 113.68 with targets towards 114.80 and up to 115.62 (+2/8).
A breakout and consolidation above the 200 EMA (113.68) will give us a good chance to buy the Japanese yen with targets towards 114.80.
Support and Resistance Levels for December 01 - 02, 2021
Resistance (3) 114.56
Resistance (2) 114.06
Resistance (1) 113.68
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Support (1) 113.20
Support (2) 112.50
Support (3) 111.84
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A trading tip for USD/JPY December 01 - 02, 2021
Sell below 113.68 (SMA 21) with take profit at 113.05 and 112.50 (8/8), stop loss above 113.98.