In the end of last week, the pair significantly grew amid the publication of strong data in the US and the ECB decision to expand its program.
At the same time, the Yen remains under pressure prior to the Bank of Japan meeting on that is due tomorrow. Investors worry that the regulator can apply fresh measures aimed at limiting growth in the Yen and stimulating growth.
In addition, tomorrow attention needs to be paid to data on Industrial Production in Japan.
Support and resistance
on the is moving up while the price range significantly narrowed. is growing and giving a quite strong buy signal. is growing as well and approaching the overbought zone.
The indicators recommend waiting for clearer trading signals.
Support levels: 113.50 (local low), 113.00, 112.50 (9 and 10 March lows), 112.00, 110.97 (11 February low).
Resistance levels: 114.00 (local high), 114.54 (2 March high), 115.00, 115.56, 116.00, 116.50, 117.00.
Long positions can be opened after the breakout of the level of 114.00 (with the appropriate indicators signals) with targets at 115.00, 115.56 and stop-loss at 113.50. Validity – 2-4 days.
Short positions can be opened after the price rebound from the level of 114.00 with targets at 113.00, 112.50 and stop-loss at 114.60. Validity – 2-4 days.