The pair continues growing amid weakening in the Yen. The Japanese currency was pressured by a victory in elections of Prime Minister Shinzo Abe who is an active supporter of an expansion in the economy stimulation program. Experts note that after the victory implementation of stimulus measures will become much easier.
At the same time, the Dollar was supported by strong data on the US labour market that was released last Friday. The Nonfarm Payrolls came out at 287 thousands, significantly exceeding expectations of 175 thousand jobs and the previous figure of 11 thousands.
Support and resistance
on the is moving down while the price range is narrowing. is growing and giving a strong buy signal. is growing as well and approaching the overbought zone.
The indicators recommend waiting for clearer trading signals.
Support levels: 102.00 (local low), 101.46, 100.57, 100.00 (8 July low), 99.00 (24 June low).
Resistance levels: 103.00 (local high), 103.39 (1 July high), 104.00, 104.82, 105.54, 106.39, 106.84 (24 June high), 107.25, 107.89 (7 June high).
Long positions can be opened after the breakout of the level of 103.39 with targets at 104.82, 105.54 and stop-loss at 102.50. Validity – 2-3 days.
Short positions can be opened after the price rebound from the level of 103.00 with targets at 100.57, 100.00 and stop-loss at 104.00. Validity – 2-3 days.