After a sharp fall in the pair last week amid American stock markets collapse, the USD gained back some losses against the Yen. Yesterday the pair fell again as poor manufacturing data came out in the US.
Today, Factory Orders and the ADP Employment Change are due in the US, but the data is expected to be weak. However, latest macroeconomic publications from Japan also show poor figures. The yen strengthening thus is happening only due to its safe-haven status.
The most important data for the week comes out on Friday, when the Unemployment Rate and Non-Farm Payrolls are due in the US.
Support and resistance
In the medium-term, the pair continues growing towards key resistance levels at 121.75, 123.00, 124.40. In the short-term, however, a slight fall towards 119.25, 118.30 amid negative US statistics is possible.
The main indicators suggest a downward movement in the pair.
A fall to the level of 118.30 (lower MA of Bollinger Bands) is expected, after which the growth towards 120.60 and 123.00 (middle and upper MA’s of Bollinger Bands accordingly) resumes.
Support levels: 120.00, 119.25, 118.65, 118.30, 117.10, 116.00.
Resistance levels: 120.60, 121.30, 121.55, 121.75, 122.15, 123.00, 123.70, 124.40, 125.00.
Place pending buy orders from the levels of 118.30, 119.25 with targets at 120.60, 123.00 and stop-loss at 117.80.