This trading week the Yen has grown steadily against the USD. However, yesterday’s positive US statistics helped the USD win back lost positions almost in full measure.
Today, investors are waiting monthly release of Non-Farm Payrolls. The number of new jobs outside US agricultural sector is expected to double and reach 228 thousand. In addition, it is predicted that unemployment rate will reduce by 0.1%, which will obviously have a positive impact on the USD.
Technical analysis shows that indicators do not give clear signals. Bollinger bands demonstrate contraction; the price chart is near the middle line, which shows the formation of new trend; however, trend direction is not defined.
Support and resistance
Support and resistance levels are the highs and lows, most frequently recorded in the few past weeks.
Support levels: 120.10 and 120.50.
Resistance levels: 119.30 and 119.00
In anticipation of the news releases today, it is recommended to open buy positions above the level of 120.10. In this case take profit can be placed at the level of 120.50. Otherwise, it is advisable to open short positions below the level of 119.30 with the target of 119.00.