Fundamental Overview
The USD got under some renewed pressure this week following some soft US data. In fact, we got lower than expected US CPI and PPI data coupled with some weak jobless claims figures. This led to a more dovish repricing in interest rates expectations and a drop in Treasury yields.
On the JPY side, the currency remains weak almost across the board as the BoJ is said to reduce its bond buying tapering plan and we continue to hear from officials that a change in rates is not going to happen anytime soon. The central bank continues to wait for US-Japan trade deal and the evolution of inflation.
USDJPY Technical Analysis – Daily Timeframe
On the daily chart, we can see that USDJPY is pulling back towards the 142.35 support following some soft US economic data. If the price gets there, we can expect the buyers to step in with a defined risk below the support to position for a rally into the 148.28 level next. The sellers, on the other hand, will look for a break lower to extend the drop into the 140.00 handle.
USDJPY Technical Analysis – 4 hour Timeframe
On the 4 hour chart, we can see that we’ve been ranging for quite some time here. The price is trading right in the middle of two key levels. From a risk management perspective, there’s nothing to do here other than waiting for the price to reach one of the two key levels.
USDJPY Technical Analysis – 1 hour Timeframe
On the 1 hour chart, we can see more clearly the recent price action with the break below the 144.35 level leading to increased bearish momentum as the sellers piled in for a move into the 142.35 level next.
If the price retests the 144.35 level, we can expect the sellers to step in with a defined risk above the level to position for the drop into the 142.35 level. The buyers, on the other hand, will look for a break higher to start targeting the 146.28 level next. The red lines define the average daily range for today.
Upcoming Catalysts
Today, we conclude the week with the University of Michigan Consumer Sentiment report.
Watch the video below
This article was written by Giuseppe Dellamotta at www.forexlive.com. Read More Details
Finally We wish PressBee provided you with enough information of ( USDJPY Technical Analysis – We remain stuck in a range )
Also on site :
- She helped build Disney’s theme park database. Now Sheila Jordan is leading a $38.5 billion Fortune 500 giant’s digital transformation efforts
- ‘90s Country Star, 60, Shows off Slimmed Down Look at Intimate Show: ‘Beautiful'
- 2 HGTV Stars Turn Heads In Cheeky Bikinis