This week the pair USD/JPY was testing the level of 122.00, but couldn't overcome it. Today the pair is being corrected due to the positive stats on Japanese indices: Consumer Confidence increased by 1,6 points, exceeding forecasts, while Tertiary Industry Activity index reached the peak since March 2014.
Today investors are waiting for the February Retail Sales release in USA. The indicator is expected to increase and support national currency.
Support and resistance
From the technical point of view the price has broken down middle MA of Bollinger Bands and is moving towards the lower MA. The closest target for the Bears is 120.75. This is also a possible pivot point; the pair can reverse and go up to the levels of 121.30 and 122.00, especially if US stats are positive. Other indicators give signals to sell. MACD histogram is in positive zone, but its volumes are decreasing. Stochastic lines are directed downwards.
Support levels: 120.75, 120.50.
Resistance levels: 121.30, 122.00.
Short-term sell trades can be opened at current price with targets within the range of 120.75-120.50. Pending buy orders should be placed at 120.75 with take-profits at 121.30 and 122.00.