This week, USD/JPY has reached the level of 122.02 having refreshed last year's lows. The dollar continues to appreciate against major world currencies against a backdrop of US positive statistics. Having opened Monday's trading session at 120.80, the yen carries on decreasing in price and the pair is currently trading at around 121.60.
Today the market is in expectation of US news, particularly of statistics for retail sales. This index reflects a change in the volume of retail sales and substantially influences the market. In accordance with preliminary forecasts, the index is expected to grow up to 0.5% (previous value: –0,8%), which is a positive factor for the US economy that will boost the current uptrend in USD/JPY trading. Moving averages are directed upwards and are not crossing on the daily chart, confirming the uptrend.
A level of 121.85 (maximum of the year 2014) remains as resistance. The nearest support level is at 120.80, a crossing point of MA 10 and the chart. Local lows at 119.63,118.45, 117.50, 117.00 and 116.15 serve as support too.