Current trend

The USD/JPY pair is trading at 152.28 amid a strengthening US currency and poor Japanese macroeconomic statistics.

Thus, the October manufacturing PMI fell from 49.7 points to 49.0 points against the forecast of 49.9 points, and the service PMI – from 53.1 points to 49.3 points, which may negatively affect economic growth in the last quarter. Tomorrow at 01:30 (GMT 2), inflation data is due. Given the maintenance of positive interest rates by the Bank of Japan, the October core consumer price index in Tokyo may decrease from 2.0% to 1.7%.

The American dollar is holding near the summer highs at 104.00 in the USDX as investors reacted neutrally to the second consecutive slowdown in existing home sales from 3.88M to 3.84M in September. Expectations for growth in the housing sector have not yet been met, putting pressure on the US economy. Today at 14:30 (GMT 2), initial jobless claims are due. Analysts expect it to increase from 241.0K to 243.0K and the total claims – from 1.867M to 1.880M.

So, the upward dynamics of the USD/JPY pair looks like the most likely scenario.

Support and resistance

On the daily chart, the trading instrument reached the crosshair of the left support of the first order (I) and the right support of the first order (I) at 152.90. After a breakout, the price will remain in a stable uptrend and continue to grow to the crosshair of the left resistance of the first order (I) and the right resistance of the first order (I) at 152.93 and to the crosshair of the left resistance of the third order (III) and the right resistance of the third order (III) at 156.49.

An alternative scenario is a movement in a downtrend with a short-term target at the crosshair of the left support of the first order (I) and the right support of the third order (III) at 150.97 and a long-term target at the crosshair of the left support of the third order (III) and the right support of the second order (II) at 147.72.

Resistance levels: 152.93, 156.49.

Support levels: 150.97, 147.72.

Trading tips

Long positions may be opened after the price consolidates above 152.93, with the target at 156.49. Stop loss – 151.00. Implementation period: 7 days or more.

Short positions may be opened after the price consolidates below 150.97, with the target at 147.72. Stop loss – 152.00.