The last week closed with the swift appreciation of the yen due to uncertainty in the US monetary policy. Fed's statement dispelled finally investors' hopes for an interest rate change, and therefore the positions opened in the hope of appreciation of the US dollar were closed. Nonetheless, the dollar is likely to continue consolidating against major currency pairs as Fed carries on hinting that interest rates will be raised in future.
The Bank of Japan's meeting held on Friday reassured investors that the national currency rate would not be lowered artificially with the view of reaching the key inflation level by the middle of the spring.
Publications of consumer price index, unemployment rate and retail sales rate in Japan expected at the end of the week may support the yen, but until then USD/JPY is likely to continue growing.
Support and resistance
A M100 moving average (120.69) is the nearest resistance level. Local lows at 119.66 and 119.31 serve as support levels.
Open short positions with Take-Profit at 119.66 and Stop Loss at 120.69. Long positions with a target at 121.50 may be opened from a level of 119.50 or above 120.70.