The beginning of this week was not very successful for the USD/JPY pair, which was the result of a poor data from the US.
In particular, Personal Spending for June grew by only 0.2%, which was the slowest growth since February. Furthermore, ISM Manufacturing showed a decline to 52.7 from the previous 53.5, as well as ISM Prices Paid that fell to 44.0 against the previous figure of 49.5.
In Japan, the Nomura/JMMA Manufacturing Purchasing Managers Index came out that also showed a decline to 51.2 from the previous 51.4. The major news is coming out in japan on Friday, when the head of the Bank of Japan Kuroda is giving his speech.
Support and resistance
Bollinger Bands on the daily chart remains horizontal. The price is above the middle MA and the price range is narrow. The indicator does not give a clear signal.
MACD is trying to turn down and form a sell signal. Stochastic is also turning down near the overbought zone. The indicators recommend short-term sales.
Support levels: 123.51 (short-term bear target), 123.00 (27 July low), 122.60, 122.00 (local low), 121.57, 121.00, 120.41 (8 July low).
Resistance levels: 124.00 (local high), 124.26 (3 August high), 124.57 (30 July high).
Open long positions after the price rebound from the level of 124.00 (with the appropriate indicators signals) with targets at 124.57, 125.00 and stop-loss at 123.51.
Short positions can be opened below the level of 124.00 with the target at 123.00 and stop-loss at 124.57.