Chart - Courtesy Trading View
Technical Analysis: Bias Neutral
- USD/JPY was trading rangebound on the day with session high at 128.69 and low at 127.93
- The pair is extending sideways at 5-DMA support, intraday bias is neutral
- GMMA indicator shows major and minor trend are strongly bullish
- Volatility is high and momentum is bullish, oversold oscillators warrant some caution
Fundamental Overview:
The Japanese Yen catches a bid as Japan government mulls higher fuel aid, extra budget in relief package.
Prime Minister Fumio Kishida’s administration mulls another comprehensive relief package after laying out the outline of long-term economic and fiscal policy in June, reports Reuters
On the other side, Federal Reserve (Fed)’ chair Jerome Powell renewed fears of significant liquidity shrinkage from the economy, underpinned a 50 bps rate hike.
Major Support Levels:
S1: 128.02 (5-DMA)
S2: 126.88 (200H MA)
Major Resistance Levels:
R1: 129.33 (Upper BB)
R2: 130
Summary: USD/JPY likely to grind sideways. Potential for minor weakness on account of overbought oscillators. Major trend however, remains bullish.
