USD/JPY chart - Trading View
Spot Analysis:
USD/JPY was trading 0.04% lower on the day at 109.75 at around 06:20 GMT
Previous Week's High/ Low: 110.26/ 109.41
Previous Session's High/ Low: 110.26/ 109.77
Fundamental Overview:
Federal Reserve Chair Jerome Powell buoyed global risk appetite on Friday, despite signaling taper this year.
Powell refrained from offering any exact timing of tapering and indicated a gap between the taper and rate hike.
Apart from the escalating virus woes, Hurricane Ida, US-China tensions and the Western dislike for the Taliban’s ruling in Afghanistan challenge the risk sentiment.
On the data front, US Pending Home Sales for July and Dallas Fed Manufacturing Business Index for August will offer further cues during the North American session.
Technical Analysis:
- USD/JPY recovery was rejected at daily cloud on Friday, the major is extending weakness
- Price action has slipped below 200H MA, 21-EMA and 5-DMA
- GMMA indicator shows a bearish shift on the intraday charts, remains neutral on the dailies
- Oscillators are flatlined in neutral territory
Major Support and Resistance Levels:
Support - 109.51 (23.6% Fib), Resistance - 109.85 (21-EMA)
Summary: USD/JPY trades in 'Symmetric Triangle' pattern. Rejection at daily cloud and retrace below 21-EMA has raised scope for further downside. Dip till 110-EMA at 109.31 likely.
Focus on US Pending Home Sales for July and Dallas Fed Manufacturing Business Index for August for impetus.
