In the Asian trading session, the Yen grew moderately against the Euro amid strong data on Japan’s trade balance. The country recorded a 513.5 billion surplus in July that is substantially above consensus of a 283.7 billion surplus.
Today the eurozone’s Consumer Price Index came out below market forecasts. The data showed that the index fell 0.6% in July after a 0.2% growth in June. This afternoon, dynamics in the pair can also be influenced by the publication of the ECB Monetary Policy Meeting Accounts, due at 1:30 pm (GMT+2).
Support and resistance
Bollinger Bands on the 4-hour chart is directed horizontally while the price range is widening. MACD remains at the zero line. Stochastic turned up near the border of the oversold zone.
The indicators recommend waiting for clearer trading signals.
Support levels: 112.99, 112.87, 112.74, 112.58.
Resistance levels: 113.27, 113.44, 113.62, 113.92, 114.01.
Long positions can be opened from the level of 113.25 with targets at 113.62, 113.90 and stop-loss at 112.95. Validity – 1 day.
Short positions can be opened from the level of 112.90 with the target at 112.40 and stop-loss at 113.20. Validity – 1 day.