Yesterday the pair showed a volatile trade amid the publication of important news.
The pair was significantly supported by information of a possible expansion in the stimulus program in Japan that could amount to $265 billion. Later in the day, however, the Dollar was pressured by the Fed decision to leave its interest rate unchanged at 0.5%.
Today attention needs to be paid to data on Initial Jobless Claims in the US. Better-than-forecast figure could provide additional support to the pair. Extra attention needs to be paid to tomorrow’s decision by the Bank of Japan.
Support and resistance
The pair bounced off the border of the and at present consolidated below the psychologically important level of 105.00. A breakdown of 50% Fibonacci correction could accelerate pair’s fall.
The is breaking down the 50-point mark suggesting the fall could continue.
Support levels: 104.50, 103.20, 102.40.
Resistance levels: 105.30, 106.00, 106.50, 107.50.
Long positions can be opened after the breakout of the level of 105.40 with targets at 106.00, 106.50.
Short positions can be opened from the level of 104.40 with targets at 103.80, 103.20.