Current trend
USD is growing against JPY, renewing local highs since May 22, 2018, supported by political problems in EU and ambiguous Japanese macroeconomic statistics. Monday data on Tankan PMI turned out to be controversial. In Q2 2018, Non-Manufacturing PMI grew from 23 to 24 points, while the Large Manufacturing Index fell from 24 to 21 points.
Today the pair is trading in different directions. After renewing the local highs, USD was corrected downward, and at the moment the instrument is near the opening levels. On Tuesday, traders will focus on ISM NY index – Business Conditions and May Factory Orders.
Support and resistance
On the daily chart, Bollinger bands are moderately growing. The price range is widening, but not as fast as the "bullish" mood develops. MACD is growing, keeping a weak buy signal (the histogram is above the signal line). Stochastic reached its highs and is reversing horizontally, reflecting that USD can become overbought in the short term. It is better to wait until the situation is clear.
Resistance levels: 111.11, 111.38, 111.85.
Support levels: 110.47, 110.25, 110.00, 109.76.
Trading tips
Long positions can be opened after the breakout of the level of 111.11 with the targets at 111.50 or 111.85–112.00 and stop loss 110.80–110.70.
Short positions can be opened after the breakdown of the level of 110.47 with the targets at 110.00 or 109.50–109.45 and stop loss not far than 111.00.
Implementation period: 2–3 days.


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