Current trend

The USD/JPY pair is correcting in a sideways trend at 143.22. After a decline, the yen stabilized against neutral macroeconomic reports.

Thus, the September manufacturing PMI amounted to 49.6 points, slightly lower than 49.8 points last month, and the services PMI increased from 53.7 points to 53.9 points. The indicator of prices for corporate services, which determines the rate of inflation in trade between enterprises, remained at 2.7%, and the core indicator of the consumer price index was at 1.8%, which may be an argument for the Bank of Japan in the issue of raising the interest rate at the next meeting.

The American dollar is falling, trading at 99.90 in the USDX after the publication of the Conference Board consumer confidence index. The September indicator fell from 105.6 points to 98.7 points, breaking the level of 100.0 for the first time since early spring this year and emphasizing the negative trend in the US economy. Today, data on new home sales is due, and if analysts’ forecast, which suggests a decrease in the indicator from 739.0K to 699.0K, is confirmed, the dollar may renew its year’s lows, falling well below the key level of 100.00.

Support and resistance

On the daily chart, the trading instrument is correcting downwards within the downward channel 144.00–139.00.

Technical indicators maintain a stable sell signal: fast EMAs on the Alligator indicator are well below the signal line, and the AO histogram is forming downward bars in the sell zone.

Resistance levels: 143.90, 146.90.

Support levels: 142.60, 140.40.

Trading tips

Short positions may be opened after the price declines and consolidates below 142.60, with the target at 140.40. Stop loss — 143.40. Implementation period: 7 days or more.

Long positions may be opened after the price grows and consolidates above 143.90, with the target at 146.90. Stop loss — 143.00.