Current trend

After reaching 160.00, the USD/JPY pair fell sharply to 155.50 against possible interventions of the Bank of Japan.

The country’s financial authorities have not yet commented on today’s strengthening of the yen but recently, the media mentioned the regulator’s readiness to stabilize the national currency if necessary. Experts believe that department officials have begun to implement these measures, and in this case, the USD/JPY pair will continue to decline in the medium term. Tomorrow, preliminary statistics on industrial production dynamics are due. The March figure may rise from –0.6% to 3.4%, supporting the currency.

On Friday, investors will pay attention to the US nonfarm payrolls data. According to preliminary estimates, the April value will be 243.0K, strengthening the American dollar and the USD/JPY pair. Otherwise, the price may overcome the level of 155.50 and continue the negative trend with the target at 151.80.

Support and resistance

The long-term trend is upward: after reaching the resistance level of 159.72, the trading instrument corrected to the support level of 155.50, reversed, and is trying to continue growing. After a breakout of 159.72, the next target is 164.07. The RSI (21) indicator is in the overbought area, indicating a likely continuation of the downward movement.

The medium-term trend is upward. After reaching zone 4 (159.28–158.77), the quotes fell to the key support area of 155.05–154.57, reversed, and reached the level of 157.23. After its breakout, the price may retest the zone 4. Otherwise, the price will overcome the key support level, and the trend will change downwards.

Resistance levels: 159.72, 164.07.

Support levels: 155.50, 151.80, 150.77.

Trading tips

Short positions may be opened below 154.95, with the target at 151.80 and stop loss 156.00. Implementation time: 9–12 days.

Long positions may be opened above 160.35, with the target at 164.07 and stop loss 158.85.