Friday, July 20, 2018

USD/JPY - 20 July 2018

  • Dollar
  • Yen

Fundamental Highlights

Trump’s comment forced the Dollar lower as he expressed disappointment in higher Federal Reserve interest rates. The US Dollar was trading firmly against most G10 until the comment caused a reversal. The USDJPY was trading firmly above the 113 level but Trump's comments in addition to falling yields could start a new trend of yen strengthening.

Technical Analysis

The USD/JPY is trading lower due to Trump's comment and broke under the 113 level trading at 112.40 after bouncing from 112.20. A break under this level will be a turning point for the pair and could push it lower towards the 112 level and the 111.40 in extension. On the other hand, a pullback above the 113.80 will lead towards new highs for the year.

Support: 111.40 110.65
Resistance: 113.65 114.30

Chart (D1)