Last week the pair significantly fell and lost about 470 points. The pair was pressured by poor data from the US on the Services PMI’s, Initial Jobless Claims and the ADP Employment Change.
Today the Yen was supported by data on Labour Cash Earnings from Japan that grew by 0.1%. At the same time, the Eco Watchers Survey: Current fell from 48.7 to 46.6 points.
Support and resistance
On the 4-hour chart, the pair is trading in the lower Bollinger band. The price remains below the EMA50, EMA100 and EMA144. MACD histogram is in the negative zone and its volumes are falling. ADX is moving down, while DI lines are crossing over and directed down.
Support levels: 117.06, 116.82, 116.48, 115.92.
Resistance levels: 117.64, 118.06, 118.27, 118.63, 118.80, 119.00, 119.37.
Short positions can be opened from the level of 116.70 with targets at 116.50, 116.20 and stop-loss at 117.00. Validity – 1-2 days.
Long positions can be opened from the level of 117.65 with the target at 118.00 and stop-loss at 117.40. Validity – 1-2 days.