Tuesday, August 13, 2019

USD/JPY - 13 August 2019


Fundamental Highlights

The Dollar/Yen touched 105 during yesterday’s session as global equities kept reporting losses after geopolitical issues kept the bid on the Yen high. US-China trade war fears, violent protests in Hong Kong and US-Iran tensions took a toll on the US Dollar, as investors keep rushing to the anti-risk Yen. Equities and the Yen are aligned after yesterday’s divergence confirming more possible downside on this pair. If today the US releases a weaker than expected Core CPI data, it could influence the short-term momentum to the bears side pushing price lower, possibly towards the yearly low 104.65.

Technical Analysis

The Yen bears remain in control as price keeps printing lower-lows and lower-highs. If the bears take out the recent established low, 105, it could extend the losses towards the yearly low 104.65. The bulls on the other hand, need to at least break above 105.50 to stop the short-term bearish momentum, but ultimately the buyers need to push price above 105.85 to regain control.

Support: 105.30 / 105 / 104.65
Resistance: 105.55/ 105.85

Chart (H4)