During this week the price chart shows the weakening of the yen against the US currency. Yesterday, amid the negative US releases the yen rose slightly but soon returned to its previous level. Today, the main news comes from Japan where the Bank of Japan releases its Monetary Policy Statement. The level of Interest Rate and other monetary policy decisions as well as economic factors, which influenced them, are the main indicators that may shed light on further Central Bank policy measures.
Support and resistance
On the four-hour chart MAs of Bollinger Bands are narrowing, while on the hourly chart the lines are moving sideways. Today, the market should remain calm until the information on the monetary policy is released.
Resistance levels: 123.50 (upper MA of Bollinger Bands on H1 chart), 123.70 (local maximum), 124.08 (upper MA of Bollinger Bands on H4 chart).
Support levels: 123.35 (middle MA of Bollinger Bands on H1 chart), 123.20 (lower MA of Bollinger Bands on H1 chart), 123.06 (middle MA of Bollinger Bands on H4 chart).
Before Monetary Policy Statement is released, it is recommended to set pending orders in both directions. Open short positions below 123.35 with the target at 123.20. In the case of the market reversal, buy the pair above 123.50 with the target at 123.70.