From the end of October to the beginning on November, the USD/JPY pair was strengthening notably. The pair gained support from favorable US macroeconomic data and growing demand for the American currency amid expectations of a hike in US interest rates.
This week, a series of important macroeconomic statistics might influence the price dynamics. Japan’s final GDP for the third quarter is due today, while the US releases its Retail Sales, labor market and key indices data at the end of the week.
Support and resistance
During almost a month, the price is trading within a narrow sideways channel 123.45-122.00, but, nevertheless, the trend in the pair remains upward.
Technical indicators confirm upward dynamics. MACD indicates growing volumes of short positions; trend indicators suggest further growth in the pair.
Support levels: 123.00, 122.50, 122.10, 121.80, 121.30, 120.75, 120.25, 119.40, 118.60.
Resistance levels: 123.75, 124.10, 124.75, 125.50, 125.70.
Pending buy orders can be placed at the levels of 122.50, 122.00 with the target at 123.75 and 125.50 for the long term and stop-loss at 121.70.