USD/JPY traded stably on Wednesday as positive statistics for US inflation had exhausted their effect. Moreover, the dollar was affected by the data on durable goods orders. This index decreased by 1.4% in February in the contrary to experts' forecasts of a 0.4% increase.
The yen is expected to appreciate and reach a level of 118.35 in the run-up to the publication of important Japanese economic statistics on Friday. If statistics for Japanese consumer price index are upbeat, the Japanese currency will have good outlook for further appreciation.
Support and resistance
The moving average is pointing to a powerful downtrend. Stochastic lines are directed downwards, which also indicates an upcoming downward movement.
A value of 119.83 – M100 moving average - is the nearest resistance level.
This week's minimum at 119.22 serves as support level.
Short positions should be opened with a target at 118.35 and protective orders at 119.75.