Current trend

The USD/JPY pair shows slight growth: the day before, the instrument tried to consolidate above the psychological level of 150.00, but in the second half of the day the Japanese currency managed to regain its position, briefly correcting to the level of 147.40. Earlier, Japanese Finance Minister Shunichi Suzuki said that any government decision on foreign exchange intervention will be made in accordance with existing market volatility, and not based on specific price levels, while emphasizing the "extreme importance of stable currency movements", which should reflect fundamental economic indicators. In addition to strengthening technical factors, the yen is supported today by macroeconomic statistics: the Manufacturing PMI from Jibun Bank in September rose from 53.3 points to 53.8 points with neutral analyst forecasts.

At the same time, the US dollar still maintains a fairly strong position in the market and may soon recover Tuesday’s losses, especially if macroeconomic statistics turn out to be better than preliminary estimates. Today there will be data on the Services PMI for September, as well as a report from Automatic Data Processing (ADP) on private sector employment, which will be important before the publication of September data on the US labor market on Friday.

Support and resistance

Bollinger Bands in D1 chart show moderate growth. The price range is narrowing, reflecting ambiguous dynamics of trading in the short term. MACD reversed downwards having formed a new sell signal (located below the signal line). Stochastic, having retreated from its highs, develops downward dynamics, signaling in favor of the development of a "bearish" trend in the near future.

Resistance levels: 149.69, 150.00, 150.50, 151.00.

Support levels: 149.00, 148.47, 148.00, 147.36.

Trading tips

Short positions may be opened after a breakdown of 149.00 with the target at 148.00. Stop-loss — 149.50. Implementation time: 1-2 days.

The return of the "bullish" trend with the breakout of 149.69 may become a signal to open long positions with the target at 150.50. Stop-loss — 149.20.