Current trend
The pair USD/JPY demonstrated growth during trading on Tuesday in view of release of weak data from the USA: the sales of new houses dropped by 3.4% and did not meet the expectations of the investors. The fall of the indicator shows the reduction of stimulation of corresponding industry, service, and labor market sectors which has a negative impact on the rate of the national currency. Moreover USD ignored "hawkish" statements by the head of the Fed Janet Yellen in which she called for the strategy of gradual increase of interest rates.
Today traders will pay attention to the data on incomplete housing sales transactions in the USA and statements by the Fed's members James Bullard and Lael Brainard.
Support and resistance
On the H4 chart the instrument is growing within a narrow range formed by the upper and middle lines of Bollinger Bands. MACD histogram is above the signal line keeping a signal for the opening of long positions.
Support levels: 112.50, 112.05, 111.50.
Resistance levels: 112.75, 113.00, 113.30.
Trading tips
Buy orders may be opened from the current level with target at 113.30 and stop-loss at 112.20. The period of implementation is 1-3 days.
Short positions may be opened from the level of 112.00 with targets at 111.50 and stop-loss at 112.30. The implementation period is 3-5 days.
The pair USD/JPY demonstrated growth during trading on Tuesday in view of release of weak data from the USA: the sales of new houses dropped by 3.4% and did not meet the expectations of the investors. The fall of the indicator shows the reduction of stimulation of corresponding industry, service, and labor market sectors which has a negative impact on the rate of the national currency. Moreover USD ignored "hawkish" statements by the head of the Fed Janet Yellen in which she called for the strategy of gradual increase of interest rates.
Today traders will pay attention to the data on incomplete housing sales transactions in the USA and statements by the Fed's members James Bullard and Lael Brainard.
Support and resistance
On the H4 chart the instrument is growing within a narrow range formed by the upper and middle lines of Bollinger Bands. MACD histogram is above the signal line keeping a signal for the opening of long positions.
Support levels: 112.50, 112.05, 111.50.
Resistance levels: 112.75, 113.00, 113.30.
Trading tips
Buy orders may be opened from the current level with target at 113.30 and stop-loss at 112.20. The period of implementation is 1-3 days.
Short positions may be opened from the level of 112.00 with targets at 111.50 and stop-loss at 112.30. The implementation period is 3-5 days.