On Monday, the British Pound strengthened against the Japanese Yen. Amid mixed macroeconomic statistics for October, released both in Japan and the UK, the pair managed to rise from its local lows, reached earlier on Friday.
In the first half of the day, Japan’s Retail Sales statistics supported the JPY. The indicator was up by 1.1% against a 0.8% growth in September. In annual terms, the indicator grew by 1.8% after the previous 0.1% decline.
The British currency, in its turn, was under slight pressure when Consumer Credit data was released in the UK. The indicator declined from 1.303 to 1.178 billion Pounds that was below the forecast of 1.300 billion. At the same time, the number of Mortgage Approvals increased from 68 874 to 69 630, but analysts expected a growth to 70 000.
Support and resistance
Bollinger Bands indicator on the daily chart is turning down, while the price range is widening. MACD is trying to start growing but still giving a sell signal. Stochastic is in the middle of its range and directed upward.
The indicators recommend waiting for clearer trading signals.
Support levels: 184.81, 184.20 (27 November low), 183.32, 182.46, 182.00 (near 13 October low), 181.37.
Resistance levels: 185.75 (25 November high), 186.26, 187.32, 188.26, 188.78 (19 November high), 189.95, 190.97.
Long positions can be opened after the breakout of the level of 186.50 (with appropriate indicators signals) with the target at 187.75 and stop-loss at 186.00. Validity – 1-2 days.
Short positions can be opened after the breakdown of the level of 185.00 with the target at 183.50 and stop-loss at 185.30. Validity – 2-4 days.