Monday, July 15, 2019

USD/JPY - 15 July 2019


Fundamental Highlights

The Dollar/Yen dropped hard during Friday’s session after multiple dovish Fed speakers implying rate cuts and a new round of QE. Today, Japan’s financial markets are closed due to Marine Day Holiday, meanwhile China released much better-than-expected economic data including Retail Sales, Industrial Production and the second quarter GDP, which triggered expectations of recovery in the world’s second-largest economy. Global risk benchmark, the US 10-year treasury yields rose to a new monthly high, and equities soared to new all-time highs, signaling a risk-on sentiment is probably back in the marketplace. However, amid all this positivity, the anti-risk Yen is still favored against the Dollar, as traders are still worried about the US-China unresolved trade issues.

Technical Analysis

The Dollar/Yen broke below the 50 and the 200-day moving averages on Friday, giving the advantage to the bears in the short-term. Currently, the bulls are attempting to regain control by breaking above 108.10, failing to do so the sellers will continue with their recent momentum and take price lower to retest 107.80. A break below that level will open doors for much further weakness towards 107.60.

Support: 107.80 / 107.60
Resistance: 108.10 / 108.50

Chart (H4)