The pair showed impressive growth over the past two weeks in a row. USD/JPY broke the important resistance of 104.00 and closed above this level.
US retail sales data last week were contreversial, but the dollar's rise was due to the release of the FRS minutes, which added confidence to traders that the interest rate will be raised in December this year.
The head of the Bank of Japan Kuroda said the bank is unlikely to achieve its goals for inflation until 2018, but the statement did not mention any changes to the existing program of quantitative easing.
Today US Industrial Production will be published, the index is expected to grow by 0.1% compared to the previous month, which could favorably affect the dollar, and the pressure the Yen.
Support and resistance
On the daily chart the pair grows in the direction of the upper line of the indicator «Bollinger Bands». MACD histogram is in the positive area, gradually increasing the volume. Stochastic is in the neutral zone, the oscillator lines are directed downwards.
Support levels: 104.00, 102.90, 101.70, 100.15, 98.85.
Resistance Levels: 105.00, 107.00, 108.15, 110.00, 111.50.
Trading tips
Long positions can be opened at the current price with the targets at 105.00, 105.50 and stop loss at 104.00.
Short positions should be placed at the level of 103.90 with the targets of 102.90, 102.00 and stop loss at around 104.20.
Term of realization of the forecast: 1-3 days.
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