FxWirePro: USD/JPY neutral in the near-term, scope for downward resumption
USD/JPY declined on Wednesday as dollar edged down after U.S. President Donald Trump raised the spectre of a government shutdown to fulfill a campaign pledge, but overall moves among major currencies were limited ahead o…
USD/JPY declined on Wednesday as dollar edged down after U.S. President Donald Trump raised the spectre of a government shutdown to fulfill a campaign pledge, but overall moves among major currencies were limited ahead of this week's Jackson Hole global central bankers' conference.
The U.S. government is bumping up against its debt ceiling, with the possibility that it will be unable to pay all its bills in October and face a shutdown unless Congress approves an increase in its borrowing capacity by the end of next month.
Investors are awaiting speeches from Fed Chair Janet Yellen and European Central Bank President Mario Draghi on Friday in Jackson Hole, though neither is expected to announce new policy messages.
The dollar fell 0.4 percent to 109.17 yen, but it remained well above a four-month low of 108.65 yen set late last week.
The pair remains under bears control unless until it trades below 109.76 resistance level, therefore it is good to sell this pair on rallies.
To the upside, immediate resistance can be seen at 109.37, a break above this level would take the pair towards next resistance level at 109.76.
To the downside immediate support can be seen at 108.98, a break below this level will open the gates towards next level at 108.48.
