FX.co ★ Trading signals for USD/JPY on February 17-18, 2022

USD/JPY is moving with a slightly negative bias, trading below the 21 SMA and below 8/8 Murray. During the US session on Wednesday, it was trading below the 21 SMA and within a downtrend channel formed since February 10.

The short-term trend remains bullish as it remains above the 6/8 Murray and above the 200 EMA and above the uptrend channel formed since January 25.

Rising fears over the conflict between Russia and Ukraine continued to support a positive risk helping to strengthen the pair. This in turn gave support to yen the safe haven and offered some support for the pair to consolidate below 115.62.

The possibility of a more rapid tightening of monetary policy by the Fed, supports the prospects of a further upward movement for JPY/USD.

An increase in the interest rate by 50 basis points in March could give it a strong upward push towards the psychological level of 120.00.

In the short term, it is expected to continue to appreciate. It could drop below 115.50/62 towards the support of 6/8 Murray at 114.84 or towards the 200 EMA around the psychological level of 115.00. A break below the uptrend channel and below 114.84 could accelerate the move down towards the support at 113.60.

If the pair breaks below the uptrend channel and below 114.84, it may drop to the support level of 113.60.

Conversely, a consolidation above 115.65 would mean a resumption of the move higher towards +2/8 Murray around 116.40. Our trading strategy for now is to continue selling below the downtrend channel. A daily close above this channel should prevent selling.

The eagle indicator is trading with a bearish bias. The negative signal is likely to help strengthen the pair. It could fall in the coming days to the key level of 114.84.

Support and Resistance Levels for February 17 - 18, 2022

Resistance (3) 116.01

Resistance (2) 115.72

Resistance (1) 115.54

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Support (1) 115.10

Support (2) 114.84

Support (3) 114.45

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Scenario

Timeframe H4

Recommendation: sell below

Entry Point 115.52

Take Profit 115.23; 114.84

Stop Loss 115.87

Murray Levels 116.01 (+1/8), 115.62(8/8), 115.23 (7/8), 114.84 (6/8)

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