USD/JPY: Rise In The Pair Is Likely To Continue
LiteForex Europe | Apr 27, 2015 06:33AM ET
Last Friday, the price of the pair USD/JPY continued to decline, testing strong support level of 118.80. However, the pair failed to consolidate below this level and started to rise again. The American dollar was under pressure from the weak data on the orders for durable goods for March. This index amounted to 0.4%, which was lower than expected.
Today, there will not be important news, which can affect movement in the pair; however, on Tuesday, attention shall be focused on retail sales in Japan for March. And consumer confidence index in the USA for April. It is expected that Japanese retail sales will drop, while American consumer confidence index will grow. Therefore, the price is likely to go up in the near future.
Technically, the price had gone beyond the limit of the bottom line of Bollinger bands and reversed. Now, the price is undergoing correction. The nearest target of the “bulls” is the level of 119.50 (middle line of Bollinger bands). If this level is broken down, the price can go further up to 120.00.
Technical indicators demonstrate that upward movement will continue. MACD histogram is in the negative zone; its volumes have slowed down the rise. Stochastic lines have crossed and turned upwards.
Support levels: 118.80 and 118.45.
Resistance levels: 119.50 and 120.00.
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