USD/JPY: USD is providing support to the pair
The pair USD/JPY is going up due to the growing USD. Yesterday positive US statistics was released. It became known that business activity index in the non-manufacturing sector rose from September’s level of 54.4 up to 55.5 points. Investors hope that US Fed will launch curtailing of quantitative easing programs in the near future. At the moment the growth in the pair is restricted only by technical profit taking of the “bulls”.
Support and resistance
The nearest resistance level is yesterday’s highs of 98.68. When this level is broken down, the pair will test the highs of last Friday at the level of 98.85. Next resistance levels - are the highs of September: 99.13 and 99.66. Support level is 98.15 (yesterday’s lows), next support levels are the lows of October: 97.80 and 96.93.
It is recommended to open long positions after breakdown of the level of 98.68 with partial profit taking at the level of 98.85 and a target of 99.13. Protective orders can be placed at the level of 98.15.
Analyst of LiteForex Group of Companies