Monday, July 8, 2019

USD/JPY - 08 July 2019


Fundamental Highlights

The Dollar/Yen moved higher on Friday as the probability of US rate cuts decreased after the US created more jobs than expected. The solid NFP report sent US Treasury yields higher, with the yield on the benchmark 10-year note recovering above 2.0%, and stocks sharply down, which will put a hold on further potential gains on this pair. However, President Donald Trump’s criticism to the Fed’s monetary policy tightening and fresh concerns about the less likeliness of a trade deal between the US and China, triggered greenback’s profit taking in the early Asian session. Today traders will focus on US equities as they could act as leading indicators of the pair’s possible next destination.

Technical Analysis

The Dollar/Yen bounced on Friday as the 50-day moving average acted as a nice support, until price faced a resistance level around 108.50, which is also the 200-day moving average. The bulls will attempt to break above this resistance level to retest the major multi-year support, recently turned resistance at 109. The sellers on the other hand, will try to break below the 50-day moving average to regain bearish momentum.

Support: 108.15 / 107.85
Resistance: 108.50 / 109

Chart (H4)