Yesterday, the currency pair USD/JPY was traded in the range of 122.47-123.60. Yesterday’s opening price was 123.42, later the pair declined to the bottom limit of the range and then consolidated at the level of 123.00.
American news is not scheduled for the release today. Investors are waiting for the meeting of the Bank of Japan. Volatility is not expected to be high today; traders will try to close short positions and lock in profit at the end of the week.
Technical analysis shows that Bollinger bands are narrowing and the price chart is near the middle line of the indicator. The picture confirms that due to the lack of fundamental news the pair will move in the sideways channel.
Support and resistance
Currently, the nearest support level is 122.00 (bottom moving average line of Bollinger bands).Resistance level is the middle MA of the indicator (123.70).
The pair USD/JPY will move in the sideways trend today; therefore it is better to refrain from making transactions. As an alternative scenario it is possible that the pair will decline from the middle to the bottom line of Bollinger bands. In this case sell positions are advisable from the level of 123.00 and exit point of 122.00.