The demand for the US dollar allowed the USD/JPY to refresh its highs at about 122.00. Then the pair slightly corrected downwards and traded in a range of 121.00-121.65 practically throughout the whole week. This week, investors' attention will be riveted on Fed's decision regarding interest rates. They are likely to remain the same, but the US regulator may cast light on when interest rates will be raised.
From technical point of view, the pair is trading within a sideward channel. Indicators are not producing any clear signals. Pending orders should be placed from the borders of the channel.
Support and resistance
Resistance levels are located at 121.65, 122.00. Suport levels are at 121.10, 120.80, 120.50, 120.25. Bears' main goal is getting back below 1260.00.
Long positions should be opened once the price breaks down the upper border of the channel at 122.00. Buyers' main target will be a level of 123.00. Sell below the level of 121.10 with the target at 120.25.