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FxWirePro: USD/JPY pauses 4 straight sessions' downside, dollar catches safe-haven bids amid rising risk-off

USD/JPY chart - Trading View 

USD/JPY Spot:

USD/JPY was trading 0.14% higher on the day at 109.35 at around 04:35 GMT.

Previous Session's High/Low: 109.75/ 109.11

Previous Week's High/Low: 110.80/ 109.54

Technical Analysis:

GMMA Indicator - Major trend neutral, minor trend bearish

Ichimoku Analysis - Price action is below cloud, Chikou span is biased higher

Oscillators - In neutral territory, bias lower

Bollinger Bands - Show high and rising volatility

Moving Averages - Bias lower

Fundamental Overview:

Japan to extend COVID-19 emergency lockdown as COVID-19 cases spike in the capital and nationwide.

US dollar enjoyed the safe-haven currency status as rising Covid cases and geopolitical tensions on account of turmoil in Afghanistan weigh on market sentiment.

Focus is now on U.S. retail sales data due later in the day as well as the minutes of Fed's July meeting on Wednesday for cues on the central bank's stimulus tapering.

Major Support Levels: 109.22 (110-EMA), 109, 108.82 (converged trendline and 200-week MA)

Major Resistance Levels: 109.51 (23.6% Fib), 109.63 (20-week MA), 109.79 (5-DMA)

Guidance: USD/JPY is holding minor gains as the US dollar draws safe-haven bids. Major technical bias remains remains bearish. Scope for dip till 200-week MA. Focus on FOMC minutes for impetus. 
 

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