The USD/JPY pair ended the previous trading week near the opening levels.
On Friday, the Yen was growing moderately during the morning session supported by the statements of BoJ Governor Haruhiko Kuroda that the is not considering any further cuts in interest rates. More support for the currency came from favorable data on labour cash earning which were up by 0.4% in January after the previous 0.2% growth.
Then, the pair gained back its losses amid US macroeconomic data but did not manage to strengthen further, as the US Dollar came under pressure due to a fall in the indicators of average hourly and average weekly hours.
Support and resistance
indicator on the is directed horizontally while the price range is trying to remain within the current borders. is slowing down its growth but is still keeping a relatively strong buy signal. has left the overbought zone and moving up-and-down.
The indicators recommend waiting for clearer trading signals.
Support levels: 113.50, 113.00, 112.50, 112.00, 110.97 (11 February low).
Resistance levels: 113.85, 114.54 (2 March high), 115.00, 115.56, 116.00 (8 February level), 116.50, 117.00.
Long positions can be opened after the price breaks out and consolidates above the level of 113.85 with targets at 115.00, 115.60 and stop-loss at 113.00. Validity – 2-3 days.
Short positions can be opened if the price breaks down the level of 113.00 with targets at 112.00, 111.50, 111.00 and stop-loss at 113.70. Validity – 2-4 days.