During the last two days the pair substantially fell.
The pair was pressured by strong data on Machinery Orders for October in Japan that grew by 0.7% and significantly exceeded forecasts. In addition, the Yen is supported be revised data on the GDP for the third quarter that showed a 1% growth, the Consumer Confidence Index for November that increased to 42.6 points and Labour Cash that grew by 0.7%. At the same time, demand for the Yen as the safe-haven currency could increase prior to meetings by the Bank of England and Swiss NB that are due tomorrow.
Strong macroeconomic data can push the Bank of Japan to postpone further easing that will also support the Yen.
Support and resistance
The pair remains above the strong support levels at 122.60 (EMA144), 122.50 (38.2% Fibonacci correction), 122.35 (EMA200 on the 4-hour chart), a breakdown of which would send the price towards 122.15 (EMA50 on the ). A farther fall is restricted by support levels at 121.50 (50% correction), 121.35 (EMA144), 120.60 (61.8% correction, EMA200).
On the 4-hour and OsMA and recommend sales.
Support levels: 122.60, 122.50, 122.35, 122.15, 121.50.
Resistance levels: 123.00, 123.50, 123.70, 124.00, 124.50.
Pending buy orders can be placed at the level of 123.10 with targets at 123.50, 123.70, 124.00, 124.50 and stop-loss at 122.80.
Pending sell orders can be placed at the level of 122.50 with targets at 122.35, 122.10, 121.80, 121.00, 120.70 and stop-loss at 122.80.