Thursday, July 26, 2018

USD/JPY-26 July 2018


Fundamental Highlights

The USDJPY is trading lower for the 7th day after news that the BoJ may consider providing more flexibility to its monetary policy, which is leading the Japan 10-yr JGB yield to rise to its highest in almost a year. Next week the BoJ is holding a 2-day meeting where it could easily report a change to its monetary policy which will lead to a collapse of the USDJPY. On the other hand further, US Dollar weakness seems likely.

Technical Analysis

The USDJPY finally broke under its trendline support at 111.10, to trade to 110.68. A bearish momentum is likely and could lead the pair towards the 110.15 area (200-period moving average) and 109.45 in extension. On the flip side, a pullback from here might push the pair to the 111.10.

Support: 110.15 109.45
Resistance: 111.15 112.15

Chart (D1)

JPY 26/7