The American Dollar is trading against the Japanese Yen in the short term ascending channel. The pattern started to form after the Greenback's depreciation amid the release of disappointing data on housing starts and building permits on May 16. For the moment, the pair is trading right below the weekly PP at 111.79 and is heading towards the upper trend line of the pattern. Market participants should watch how the situation develops, as the release of data on US unemployment claims in the next week might lead to breakdown of the channel. Nevertheless, the exchange rate should not fall below the 110.80 mark, which represents the bottom edge of the dominant ascending channel (if any drop will follow at all).
| Level | Rationale | Indicator | 4H | 1D | 1W | |||
| R4 | 112.57 | 100-period SMA | MACD (12; 26; 9) | Sell | Sell | Sell | ||
| R3 | 112.12 | Trend line | RSI (14) | Neutral | Neutral | Neutral | ||
| R2 | 112.08/09 | 55-period SMA; Upper Bollinger Band | Stochastic (5; 3; 3) | Buy | Sell | Sell | ||
| R1 | 111.79 | Weekly PP | ADX (14) | Neutral | Neutral | Neutral | ||
| S1 | 111.54 | 20-period SMA | CCI (14) | Neutral | Neutral | Neutral | ||
| S2 | 111.42 | Trend line | AROON (14) | Buy | Buy | Buy | ||
| S3 | 111.31 | 200-period SMA | Alligator (13; 8; 5) | Neutral | Neutral | Neutral | ||
| S4 | 110.98 | Bottom Bollinger Band | SAR (0.02; 0.2) | Buy | Sell | Sell | ||
| Aggregate | ↗ | ↘ | ↘ |