Last week the USD/JPY pair fell to its previous lows near the level of 119.00.
There were plenty of macroeconomic publications from the US during the week. However, not all of them could match the expectations of experts.
The Unemployment Rate for August fell from 5.3% to 5.1%, which was a lot better than forecasts. At the same time, the Non-Farm Payrolls showed a decrease to 173 thousand of new places, against the previous figure of 245 thousand (forecasted 220 thousands).
Support and resistance
Bollinger Bands on the daily chart is moving down, while the price range is narrowing. MACD is attempting to turn down. Stochastic is slowing down and approaching the oversold zone.
The indicators point out to a possibility of the short-term correctional growth in the pair and recommend waiting for a clearer trading signal.
Support levels: 119.21 (2 September low), 118.59 (4 September low), 118.24, 117.00, 116.19 (24 August low).
Resistance levels: 120.00 (local high), 120.69, 121.39 (31 August highs), 121.73 (28 August high), 122.00, 122.60.
Long positions can be opened after the breakout and consolidation above the level of 120.00 (with the appropriate indicators signals) with targets at 121.73, 122.00 and stop-loss at 119.00.
Short positions can be opened after the breakdown of the levels of 118.59, 118.24 with the target at 117.00 and stop-loss at 119.21.