The USD/JPY pair continues growing amid investor’ demand for the USD and poor macroeconomic data from Japan, where the Manufacturing PMI for October fell from 52.5 to 52.4 points.
The USD, on the other hand, was supported by strong data on the construction sector and the labour market that showed growth in the indices above their forecasts. Furthermore, in her yesterday’s speech Fed Chair Janet Yellen gave very optimistic view on the economy and pointed out to a high possibility of an interest rate hike before the end of the year.
Support and resistance
The main scenario remains pair’s growth within an ascending channel towards the level of 125.50.
Technical indicators confirm a growth continuation. On the weekly chart, the price broke out the middle MA of Bollinger Bands and is currently growing towards the upper MA of the indicator, at the level of 125.10. MACD is in the positive zone and its volumes are increasing.
Support levels: 121.80, 121.30, 120.75, 120.40, 120.10, 119.80, 119.20, 118.60, 118.00, 117.10, 116.20.
Resistance levels: 122.10, 122.50, 123.00, 123.75, 124.10, 124.75, 125.50.
Pending buy orders can be placed from the level of 120.75 with the target at 125.10 and stop-loss at 118.80.