- USD/JPY inched higher on Wednesday as greenback was boosted by expectations for another Federal Reserve interest rate rise in 2017 and cooling geopolitical fears.
- The dollar was also benefited from a fall in the euro after sources said European Central Bank chief Mario Draghi would not use his appearance at the Federal Reserve's annual Jackson Hole conference in late August to signal policy change by the ECB.
- Stung last week by growing tensions between the United States and North Korea, the dollar has benefited this week from an especially strong U.S. retail sales report on Tuesday and a lull in the provocative rhetoric between U.S. President Donald Trump and North Korean leader Kim Jon Un.
- The Federal Reserve is due to publish the minutes of its July 26th policy meeting later Wednesday.
- The pair is set to reach 111.50 and later towards 112.00 in the short term as the US dollar is set to strengthen against its Japanese counterpart in the short term. Therefore it’s good to buy this pair on dips.
- To the upside, immediate can be seen at 111.00, a break above this level would take the pair towards next resistance level at 111.55.
- To the downside immediate support can be seen at 110.57, a break below this level will open the gates towards next level at 110.16.
Resistance Levels
R1: 111.00 (38.2% Retracement level)
R2: 111.55 (23.6% Retracement level)
R3: 112.00 (Psychological levels)
Support Levels
S1: 110.57 (50 % Retracement level)
S2: 110.16 (61.8 % Retracement level)
S3: 109.82 (Aug 4th lows)
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