On Tuesday, the Japanese Yen grew against the US Dollar and recovered losses of the beginning of the week.
As Japanese stock market is closed due to long Bank Holidays in Japan, the main source of information remains macroeconomic data from the US. On Tuesday, the Housing Price Index supported the USD as in July it grew by 0.6%, against forecasted 0.4% increase. Later, however, the Dollar was pressured by the Richmond Fed Manufacturing Index for September that fell from 0 to -5 points, while was expected to grow to 4 points.
Support and resistance
Bollinger Bands on the daily chart remains flat, while the price range is narrowing. MACD is sharply turning down and forming a sell signal. Stochastic is also turning down.
The indicators recommend opening short positions.
Support levels: 119.39, 119.05 (18 September low), 118.59 (4 September low), 118.24, 117.00, 116.19 (24 August low).
Resistance levels: 120.00 (local high), 120.69 (21 September highs), 121.32 (10 September high), 121.73 (28 August high), 122.00, 122.60, 123.00.
Open short positions after the breakdown of the level of 119.70 with targets at 119.20, 118.85 and stop-loss at 120.00. Validity – 1-2 days.
Long positions can be opened after the breakout of the level of 120.27 with the target at 120.90 and stop-loss at 119.90. Validity – 2-3 days.