Tuesday, 22 August 2017

USD/JPY Higher ahead of Nikkei PMI

USD/JPY is currently trading at 109.57, up with 0.55% for the day, having posted daily high at 109.63 and low at 108.87, which was the session opening. The US macro data that was released today showed positive numbers and a small increase in the US Treasury yields was seen today along with the worldwide equities recovery. 
Next on the calendar of macro news are the speeches of the central bankers Janet Yellen and Mario Draghi and Japan’s preliminary Nikkei Manufacturing PMI for August. So definitely I expect an intersting development for the USD/JPY pair next days.
The four-hour time frame is showing upward momentum. The price crossed to above its bearish 20-day SMA, which is easing its downside slope. Meanwhile the pair remains below the 100-day and 200-day SMAs, both trending downwards. Stochastic is displaying strong bullish momentum nad has entered into extreme overbought territory. RSI is also aiming higher, but  is currently located around its mid-line. 
First support is seen at 108.87 (the daily low) and next at 108.55 (Friday’s low). Looking to the upside, good resistance is provided by the 100-day SMA at 110.00 and higher at 110.35.




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