At the beginning of the trading week the pair was calm; however last night, after the release of the business activity index in the US service sector, the pair USD/JPY started the rise, which has been suspended only today. After reaching resistance level of 120.00, the pair has corrected to the level of 119.85, where the pair is still traded.
At the press-conference of the Central Bank of Japan, which will be held tomorrow, the head of the regulator Mr. Kuroda will shed light on the future monetary policy of the country. In the evening the minutes of the Federal Committee on the US open markets will be released, which are worth of paying attention.
Support and resistance
Technically, the pair has further growth potential. It is likely that the “bulls” will try to test resistance level of 120.50, and in case this level is broken down, the pair will go up to 121.10.
Indicators give mixed signals: Stochastic is in the overbought zone and soon will give a sell signal; while MACD on the contrary, demonstrates the rise.
Resistance levels: 120.00, 120.25 and 121.00. The nearest bullish targets are 120.00 and 121.00. Support levels are 119.85, 119.60 and 119.30.
Short positions can be opened after consolidation of the pair below the level of 119.60 with the target of 118.70. Buy positions are recommended above the levels of 120.30 and 121.00 with take profit at 123.00.