Last week, USD/JPY dropped to a local low at 118.93. The negative trend was caused by the depreciation of the US dollar. According to US statistics, GDP growth remained at the same level of 2,2% in the last quarter 2014 against a forecast of 2.4% growth.
The University of Michigan Consumer Sentiment Index was also worse than expected, having dropped from 95,4 to 93,0 points last month. Fed Governor's speech did not support the dollar either once economic news was released. Ms Yellen mentioned that interest rates may be raised this year, but weak inflation could put the rise off.
Support and resistance
Resistance levels: 119.49 (yesterday's maximum), 120.45 (middle line of Bollinger bands), 112.51 (maximum on 17th March).
Support levels: 118.93 (lower line of Bollinger bands), 118.32(minimum on 26th March), 117.17 (minimum on 6th February).
Buy after a level of 119.50 is broken with the first target at 120.40 and second target at 121.50. Sell below a level of 118.90 with targets at 118.40 and 117.50.