Wednesday 16 August 2017

USD/JPY Close to the psychological threshold at 110.00

During the Asian session today the USD/JPY pair marked a weekly high at 110.95 but the situation changed after the FOMC minutes, which led to a broad-based US Dollar sell-off. The policymakers exposed their concerns about the inflation’s slowdown. So the next rate hike depends on the targeted 2%. On the other hand the greenback still suffers after Trump’s ridiculous racist incidents. Consequently above event supported the Japanese yen.
The four-hour time frame is showing that the price has crossed to below its 100-day SMA while the 20-day SMA is keeping its course to north. RSI and stochastic retreated from extreme overbought territories and currently both are showing strong momentum towards the downside, although yet are above the mid-lines.
Technically speaking the pair is poised to extend its decline, especially in case of breaking the psychological level at 100.00. In this scenario next support levels are seen at 109.55 and 108.75. 



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