Current trend

Against the stable dynamics of the American currency, the USD/JPY pair continues the corrective movement, trading at 146.48.

The yen began to form a negative trend against yesterday’s publication of the index of leading economic indicators for August, which, after rising by 1.1% in July, decreased by 0.2% from 109.2 points to 108.9 points, which was the fourth decrease after reaching the high of 109.5 points. Today, the currency is under pressure from the statistics from the labor market, which reflected an increase in the unemployment rate from 2.5% to 2.7% while analysts expected the indicator to remain at previous levels. Thus, the USD/JPY pair may renew the historical high of 150.00 soon.

The US dollar is trading just below the 104.000 level in the USD Index, as macroeconomic drivers are not yet enough for a significant movement. Tonight, the consumer confidence index from the Conference Board for August will be published, and experts expect a decline from 117.0 points to 116.0 points. Also, investors will pay attention to the JOLTS report on the number of open vacancies in the labor market, which may change from 9.582M to 9.465M, putting pressure on the US currency.

Support and resistance

On the daily chart, the trading instrument is moving within an ascending corridor with dynamic boundaries of 150.00–141.20.

Technical indicators reinforce the buy signal: fast EMAs on the Alligator indicator move away from the signal line, and the AO histogram forms corrective bars in the buying zone.

Resistance levels: 147.50, 150.00.

Support levels: 144.80, 141.70.

Trading tips

Long positions may be opened after the price rises and consolidates above 147.50 with the target at 150.00. Stop loss – 147.00. Implementation period: 7 days or more.

Short positions may be opened after the price drops and consolidates below 144.80 with the target at 141.70. Stop loss – 145.50.