The USD/JPY pair is growing amid a fall in Retail Sales in Japan. The index fell by 1.1% on a month-to-month basis and by 2.1% on a year-over-year basis. Large Retailers’ Sales declined by 3.6% that was significantly worse than a forecasted fall of 1.8%.
Today attention needs to be paid to data on the GDP for the second quarter of the year in the US. According to forecasts, the index will increase by 0.2%, which could support the US Dollar .
Support and resistance
The pair is trying to break out a at 101.43 that is formed of the moving average with a 100 period.
On the 4-hour chart, the price is trading above the upper line of . histogram is about to enter the positive zone. reached the overbought zone.
Support levels: 101.20, 100.60, 100.15.
Resistance levels: 101.40, 101.80, 102.30, 102.68, 103.00, 103.50, 114.15.
Long positions can be opened after the price consolidation above the level of 101.40 with targets at 101.80, 102.30 and stop-loss at 101.20. Validity – 1-3 days.
Short positions can be opened from the level of 101.10 with the target at 100.60 and stop-loss at 101.30. Validity – 1-3 days.