During this month, the USD/JPY pair has been moving along the sideways channel, while fundamental data had almost no effect on the pair.
In the end of last week, the pair managed to consolidate near the level of 121.30 after strong data on US GDP for the second quarter was released, but could not break out the key resistance and fell back to 120.10.
During this week, a number of macroeconomic releases and the Fed Chair Janet Yellen speech are due in the US. In Japan, data on Industrial Production, Construction Sector and Tankan Manufacturing Indexes are due.
Support and resistance
During this week, the USD/JPY pair is likely to continue moving along the sideways channel with the bullish sentiment prevailing. In the beginning of October a significant growth is expected towards the levels of 123.00, 124.10.
The main technical indicators confirm this view.
Support levels: 120.10, 119.80, 119.40, 118.60, 118.00, 117.10, 116.00.
Resistance levels: 120.40, 120.80, 121.30, 121.80, 122.10, 122.50, 123.00, 123.75, 124.00.
Open long positions from current levels with targets at 123.00, 124.10 and stop-loss at 118.70.