Last Friday the USD/JPY pair showed a strong growth.
During the week, favorable statistics on the New Home Sales and Durable Goods Orders were released in the US, and the Gross Domestic Product Annualized came out in line with forecasts. On Friday Fed Chair Janet Yellen in her speech at the symposium in Jackson Hole supported further cautious tightening in US monetary policy. Japan, in its turn, posted relatively weak data on the Consumer Price Index.
Support and resistance
The pair broke out the upper line of Bollinger Bands. MACD histogram remains in the positive zone, its volumes are growing. Stochastic has entered the overbought zone and is moving sideways.
Support levels: 101.90, 101.60, 101.30, 101.00, 100.70, 100.30, 100.00.
Resistance levels: 102.25, 102.80.
Short positions can be opened from the level of 102.15 with targets at 101.60, 101.30 and stop-loss at 102.35.
Long positions can be opened from the level of 102.40 with the target at 102.80 and stop-loss at 102.25.
Validity – 1-3 days.