The growing risk aversion in the markets provided a strong boost to the Japanese yen as a safe haven. It is expected to continue advancing below the 200 EMA. If the NFP data to be released on Friday is weaker than expected, the Yen is likely to strengthen towards the level of 110.93.
Our trading plan is to buy if USD/JPY rebounds off around 112.50 with targets at 113.87 and up to 114.06 (+1/8). A consolidation above SMA 21 located at 113.07 will be a signal to buy the yen again with targets at 115.62 (+2/8).
On November 26, the eagle indicator reached the extremely oversold level around 5 points, since then it is moving above the uptrend channel. Consequently, the yen is expected to rise above the 21 SMA (113.07) and 200 EMA located at 113.87 with targets towards 114.80 and up to 115.62 (+2/8).
A breakout and consolidation above the 200 EMA (113.87) will give us a good chance to buy the Japanese yen with targets towards 114.80 and 115.62.
Support and Resistance Levels for December 02 - 03 2021
Resistance (3) 114.30
Resistance (2) 113.95
Resistance (1) 113.34
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Support (1) 112.39
Support (2) 112.04
Support (3) 111.48
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A trading tip for USD/JPY December 02 - 03, 2021
Buy above 113.07 (21 SMA) with take profit at 113.87 (200 EMA) and 114.06 (+1/8), stop loss below 112.63.