Current trend

The quotes of the USD/JPY pair are being corrected against the background of the positive dynamics of the American currency, trading around 141.92.

Japan's Industrial Production report posted a 2.0% rise in June from -2.2% a month earlier, but Large Retailer Sales are down 0.4% this month after a 1.4% correction. In addition, investors took a negative view of the report on the Housing Starts: the figure fell by 4.8% in June after rising by 3.5% a month earlier.

In turn, the US currency remains above the key level of 100.000 in the USD Index, having started trading around 100.500. Tomorrow, traders will pay attention to the report on JOLTS Job Openings: after an increase to 9.824 million a month earlier, a correction to 9.620 million is predicted, which is rather a negative signal against the backdrop of still weak data on Jobless Claims. In addition, the Manufacturing PMI will be published in the US, which may correct from 46.0 points to 46.5 points.

Support and resistance

On the daily chart, the USD/JPY pair is holding above the support line of the ascending corridor with dynamic boundaries of 147.00-138.50.

Technical indicators continue to reverse, but still hold a sell signal: the fast EMAs of the Alligator indicator are still below the signal line, and the AO histogram, being in the sell zone, is forming corrective bars.

Support levels: 140.60, 138.00.

Resistance levels: 142.80, 145.00.

Trading tips

If the asset continues growing and the price consolidates above the resistance level at 142.80, long positions will be relevant with target at 145.00. Stop-loss — 142.00. Implementation time: 7 days and more.

If the asset continues a corrective decline and the price consolidates below 140.60, short positions can be opened with the target at 138.00. Stop-loss — 141.40.