After a yesterday's growth of the American stock indices, the Asian stock indices are also up today: NikkeiStockAverage +2.1%, ShenzhenCompositeIndex +2.9% and ChiNext +3.3%.
A key economic adviser to Japanese Prime Minister said that there is no sufficient reason for the Bank of Japan to further stimulate the country's economy. However, given the economic decline and lowering expectations, the Regulator may start further easing its at the forthcoming meeting, due 30 October.
Support and resistance
The USD/JPY pair has returned to the range between the levels of 120.60 (EMA144 and 61.8% Fibonacci) and 119.60 (EMA200 on the ), where it has mainly been trading since the beginning of September.
OsMA and on the recommend long positions; on the 4-hour chart, the indicators are turning to short positions.
Until the Fed and the Bank of Japan hold their meetings, the pair is likely to trade near the levels of 119.60, 120.60.
Support levels: 118.85, 119.00, 119.60.
Resistance levels: 120.60, 121.00, 121.50.
Pending Buy Stop orders can be place at the level of 121.20 with targets at 121.50, 122.00 and stop-loss at 120.50.
Pending Sell Stop orders can be place at the level of 120.05 with targets at 119.90, 119.60, 118.85, 118.10 and stop-loss at 120.70.