Current trend

The USD/JPY pair remains virtually unchanged, consolidating near 151.00. At the same time, the instrument is quite actively developing upward dynamics, updating local highs at the beginning of the month.

Investors are in no hurry to open new positions ahead of another speech by US Federal Reserve Chairman Jerome Powell. The day before, the official in his speech did not focus on the prospects for monetary policy in the near future. Today, analysts will also evaluate macroeconomic statistics from the United States on the dynamics of jobless claims: forecasts suggest a slight increase in Initial Jobless Claims for the week ended November 3 from 217.0 thousand to 218.0 thousand, and Continuing Jobless Claims for the week ended October 27 may adjust from 1.818 million to 1.820 million.

Investors are also focused on the comments of the Governor of the Bank of Japan, Kazuo Ueda, who said that the current decline in Labor Cash Earnings will not affect the regulator’s plans for the transition from ultra-loose monetary policy, and everything will depend on whether the Bank’s experts can confidently predict the beginning of an increase in this indicator.

In turn, October data reflected a slight slowdown in Bank Lending dynamics in Japan from 2.9% to 2.8%. In addition, the Eco Watchers Survey on Current Situation corrected from 49.9 points to 49.5 points, while analysts expected 50.1 points, and the Eco Watchers Outlook was revised from 49.5 points to 48.4 points, falling short of expectations.

Support and resistance

Bollinger Bands in D1 chart show unsteady growth. The price range expands from above, freeing a path to new local highs for the "bulls". MACD has reversed to growth having formed a new buy signal (located above the signal line). Stochastic shows more confident growth; however, it is quickly approaching its highs, indicating the risks of the US dollar being overbought in the ultra-short term.

Resistance levels: 151.00, 151.50, 152.00, 152.50.

Support levels: 150.50, 150.00, 149.69, 149.30.

Trading tips

Long positions can be opened after a breakout of 151.00 with the target of 152.00. Stop-loss — 150.50. Implementation time: 2-3 days.

A rebound from 151.00 as from resistance, followed by a breakdown of 150.50 may become a signal for opening of new short positions with the target at 149.69. Stop-loss — 151.00.