At the trading session last Friday, the pair USD/JPY reached two-week highs at the level of 120.28. The American currency went up, despite some negative US statistics, which demonstrated that PMI remained at the previous level of 51.5 points last month, while experts expected the rise in the index to 52.0 points. According to Reuters/Michigan, consumer sentiment index also remained at the previous level of 95.9 points, which was lower than the forecast of 96.0 points.
Today’s attention of the market participants will be focused on the U.S. news on the dynamics of production orders. It is expected that this index will increase and reach the level of 2.0%, which will provide support to the USD. A speech of the member of the Fed Open Market Committee, Mr. Evans, will be also of interest. He will probably give his opinion about the timing of the interest rate increase.
Support and resistance
Resistance levels: 120.28 (Last Friday’s highs), 120.84 (highs of 13 April), 121.52 (highs of 17 March), 122.02 (highs of 10 March).
Support levels: 119.55 (middle line of Bollinger bands), 119.00 (important resistance level), 119.55 (bottom line of Bollinger bands, lows of 30 April).
It makes sense to open buy positions after breakdown of the level of 120.28 with the first target of 120.84 and the next one at the level of 121.50. Sell positions are advisable after breakdown of the level of 119.55 with the targets of 199.00 and 118.49.