The Yen continues falling against the USD. The reason of that is a sharp growth of Asian stock markets. In particular, Japanese Nikkei at the opening on Wednesday grew by more than 5%.
The Yen is not helped by relatively strong statistics from Japan neither. The Japanese GDP for the second quarter of the year fell by 0.3% (was forecasted a contraction of 0.4%), or by 1.2% yearly (forecasted 1.8% contraction). At the same time, the country’s Current Account without seasonal adjustment in July grew from 558.6 billion to 1808.6 billion Yen, which was also higher than forecasts.
Support and resistance
Bollinger Bands on the daily chart is attempting to turn up, while the price range is narrowing. MACD is growing and giving a strong buy signal. Stochastic is also moving up and approaching the overbought zone.
The indicators recommend considering long positions, or to wait for a clearer trading signal.
Support levels: 120.00 (psychologically important level), 119.21, 118.59 (4 September low), 118.24, 117.00, 116.19 (24 August low).
Resistance levels: 120.69 (local high), 121.32 (10 September high), 121.73 (28 August high), 122.00, 122.60, 123.00.
Open long positions after the breakout of the level of 121.32 (with the appropriate indicators signals) with the target at 123.00 and stop-loss at 120.50.
Short positions can be opened after the breakdown and consolidation below the level of 120.00 with targets at 119.00, 118.59 and stop-loss at 121.00.Publication source