Yesterday the pair insignificantly fell as due to the celebration of Thanksgiving Day in the US, volatility on the market was low and correctional sentiment prevailed.
Today the pair continues falling amid strong macroeconomic statistics that came out in Japan. The Unemployment Rate fell from 3.4% to 3.1% while economists did not expect any change in the index. Furthermore, the National Consumer Price Index grew from 0.0% to 0.3%.
Support and resistance
Bollinger Bands on the daily chart turned down while the price range remains unchanged. MACD continues moving downward. Stochastic is attempting to turn up near the border of the oversold zone indicating a possibility of an upward correction.
The indicators recommend waiting for clearer trading signals.
Support levels: 122.22 (16 November low), 122.00, 121.48, 121.00, 120.56, 120.34 (2 November lows), 120.00.
Resistance levels: 122.60 (local high), 122.93 (25 November high), 123.25 (23 November high), 123.60, 124.00.
Short positions can be opened after the breakdown of eh level of 122.55 (with the appropriate indicators signals) with targets at 121.75, 121.00 and stop-loss at 122.70. Validity – 1-3 days.
Long positions can be opened from the level of 122.85 with targets at 123.75, 124.30 and stop-loss at 122.50. Validity – 2-3 days.