After a growth amid publication of strong labour market data from the US, the pair is trading within a narrow range.
The pair remains under pressure from strong NFPR data and Bank of Japan commentaries that represented regulator’s tendency to continue with easy . The most likely scenario is the pair’s movement within sideways channel until Friday when Retail Sales data for October is due in the US.
Attention of the markets is now focused on employment and data from the US in November and beginning of December. If data comes out rather negative, the pair can fall.
Support and resistance
The price broke out the at 122.50 (38.2% Fibonacci correction) and continues moving along an on the 4-hour and towards 123.70 (23.6% correction), 124.50 (upper border of the channel).
At the same time, a breakdown of the level of 122.50 would send the pair towards 121.50 (50% correction), 120.60 (61.8% correction, EMA144 on the ).
OsMA and on the daily and weekly charts recommend long positions and start turning to purchases on the 4-hour chart.
Support levels: 123.00, 122.50, 122.00, 121.50.
Resistance levels: 123.70, 124.00, 124.50.
Pending buy orders can be placed at the level of 123.40 with targets at 123.70, 124.00, 124.50 and stop-loss at 123.10.
Pending sell orders can be placed at the level of 122.90 with targets at 122.50, 122.10, 121.50 and stop-loss at 123.20.