Solid News

Despite the poor macroeconomic statistics, the yen resists the growth of the US dollar but does not exceed the key level of 150.00, currently trading in the 147.33 area.

The volume of industrial production in Japan in September decreased by 1.6% from 3.4% in August, while retail sales rose slightly and amounted to 4.5% from 4.1% earlier. The negative dynamics continue in the real estate market: the volume of construction of new homes in the third quarter fell to 1.0% from 4.6% earlier, and the October household confidence index fell from 30.8 points to 29.9 points. Thus, it is now obvious that the trading instrument does not show positive dynamics only due to the weakness of the US dollar. When it starts to strengthen again, another test of 150.00 is likely since, according to analysts, the Japanese regulator will not warn the market about upcoming foreign exchange interventions to achieve maximum effect.

The US dollar is holding around 111.200 points in the USD Index, and its dynamics were not affected by the unexpectedly positive report on open vacancies in the labor market from JOLTs, according to which the number of jobs offered in September amounted to 10.717M instead of the 10.280M expected by analysts. Perhaps the reason for the poor reaction of investors was the data on the index of business activity in the manufacturing sector, which in October dropped to 50.2 points from 50.9 points earlier, continuing the five-month negative trend.

The trading instrument is moving within the global uptrend, holding close to the key level of 150.00.

Technical indicators remain neutral: fast EMAs on the Alligator indicator are held near the signal line, and the AO oscillator histogram trades above the transition level but forms downward bars.

Resistance levels: 148.70, 150.50. | Support levels: 146.20, 142.35.