USD/JPY In limited range ahead of BoJ and Fed this week

USD/JPY is trading almost unchanged from Fliday’s closing level with current market price 111.07 ahead of the upcoming BoJ and Fed meetings, scheduled to decide on monetary policy this week.
Technically speaking the short term outlook remains neutral. On the four hour time frame the price is developing below the bearish 50-day SMA and the flat 100 –day SMA, while the 20-day SMA, also flat, is proving immediate support few pips below the current price.  RSI is located at its mid-line and has lost directional strength. Stochastic      is showing strong upward momentum around 65 level.
The downside offers strong support at 110.60 provided by last week’s low while the upside is challenged by 111.40.
The pair may continue with no significant progress until BoJ’s policy meeting tomorrow, followed by Fed’s meeting on Wednesday, which will bring fresh development and signals.

USD/JPY The upside is capped by 61.8% Fibo

Although USD/JPY remains confined to Monday’s range, the Japanese Yen is showing strength after the preliminary July Nikkei Manufacturing PMI figures which came under market's expectations. Alongside with this results, the country's leading index was revised to a 6-month high of 106.9 in May giving a reflection to the current economic activity that has fallen to 116.8 in May from 117.5 in the previous month. US Treasury yields are keeping Monday’s tops but there is no perspective for further rally which leads to slowdown in the upward development for the pair. Technically speaking the short-term outlook remains neutral. On the four hour time frame the price is developing below its bearish 20-day SMA and flat 50-day and 100-day SMAs. RSI is located around 36 and has lost directional strength. Stochastic has turned to north but remains below its mid-line. Currently the pair is consolidating around 61.8% Fibonacci retracement of its latest bullish run and according to technical indicators the chances for steeper advance are limited. The upside is still capped by 111.45 where the 100-day SMA is developing while the downside remains supported by the 110.80 – 110.70 zone. 

USD/JPY Plunged on Trump's comments

During the European session the USD/JPY pair skyrocketed and reached highest levels since early January, having marked daily high at 113.18. But Trump’s comments on Fed’s policy that rate hikes are causing troubles on the economic progress made bulls give up. Earlier today the data from Japan showed better than expected numbers on trade balance while imports printed huge drop comparing to previous month (from 14% to 2.5%).

Currenlty the pair is trading at 112.48 after had pinned daily low at 112.05. On the four hour time frame the price is developing above its bullish moving averages, so the long term uptrend is not at risk. RSI and stochastic are displaying strong bearish slopes and are close to oversold territories. Further declines are expected in case of closing below the daily low which will bring next bearsih target at 111.80. On the other hand bulls might try to fight the first resistance at 112.60 which if broken will offer next one at 113.00.

USD/JPY Risk of bearish extention below 110.15

USD/JPY is trading lower today, down with 0.04% with current market price 110.50. The US dollar is losing strength as US Treasury yields and marking weekly lows while the Japanese Yen received a boost by the June Markit Services PMI.
Technically speaking the short-term outlook remains neutral to bearish. On the four hour time frame the price is developing between its moving averages, all of them staying flat.
RSI stands around mid-line and lacks directional strength. Stochastic has retreated from its overbought readings and now is showing strong bullish momentum.
Strong support is located at 110.10 – 110.20, while the pair is pushing above the 100-day SMA, which is developing within this area but as mentioned above is staying flat and is looking for direction. In case bears succeed to make a breakthrough this level, then will gather strength to lead the pair towards 109.90 or lower at 109.50.

USD/JPY Flat around 110.00 on weak Japanese inflation

USD/JPY is trading almost unchanged today around 110.00 handle.  Markit manufacturing PMI marked 7-month low and eased a little the US bears’ bearish pressure. Meanwhile mixed US equities underpin JPY’s safe-haven appeal and also heлped for the downward movement. But  the resurgent US bond yields finally stopped the march to the south, at least at the time of writing.

Technically speaking the short-term outlook remains neutral. On the four hour time frame the price is developing below its moving averages, but feeling comfortable around 110.00 level. RSI is looking for direction around 47 while stochastic is showing good upward momentum, located below its mid-line. 

The 110.20-110.30 area will continue to act as an immediate resistance, which if broken to above will lead the pair towards next supply figure at 110.75 before potential hike of the critical 111.00 hurdle. The downside remains supported by 109.85 but in case is breaking it to below, doors are opened for testing 109.50 intermediate support and having next bearish target around 109.00.

USD/JPY Is consolidating between Fibonacci levels

The USD/JPY pair is trading lower today, down with 0,4% at around 109.30. The Japanese yen is showing charm on falling European indices while the US dollar is losing strength ahead of G7 meeting.
Technically speaking the short term outlook remains neutral to bearish. On the four hour time frame the price is developing below its flat moving average. Currently the pair is consolidating between Fibonacci levels, below the 50% retracement of the May’s bearish slump, but right above the 38.2% level at 109.30. Stochastic is displaying sharp downward slope and is located within negative territory while RSI has lost directional stregth aroud its 38 level.
A daily close below the the current level will bring additional strength for bears to test the 109.00 region, which if broken will open doors for testing the monthly low at 108.10. Looking to the upside, bears would relieve around above mentioned 50% Fibo at 109.75.

 

USD/JPY Develops within ascendant channel

The last release of Japan’s economic growth showed weak figures and blurred the lines of Abenomics reforms, and of course reduced the likelihood of tightening the BoJ’s monetary policy in the near future. Technically speaking this weakness supported the US bulls who are already gaining strength during the last sessions. The USD/JPY today attacked the February’s high and currently is trading slightly above the 200-day SMA at 110.36. As seen on the daily chart the price is developing within the current bullish channel, that has started from late March. RSI and stochastic are showing strong upward momentum and are close to overbought areas. Meanwhile the pair is located fairly in middle of the channel, so now we should consider both the upside and down side. Reversals would  be supported by the lower bound of the channel, which currently comes at 109.40. On the other hand the more likely scenario is bullish continuation towards the resistance at 110.40, which is broken to above would open doors for testing the upper channel’s bound at 111.40.

USD/JPY Remains bullish despite the dovish Fed

It’s all about Fed today. As widely expected the Central Bank left the interest rate unchanged but markets took their time to react on the dovish statement before the US Dollar dropped.

Well it’s hard to define the future as know or unknown. The Fed didn’t say that the outlook has improved. If the prospects are not better, there is no reason to accelerate increasing rates. Also  chances for a June hike after the statement seem to have disappeared. On the other hand the use of moderation word, copied from the ECB President Mario Draghi is a way to describe the slowdown. Meanwhile the US dollar gained strength during the past weeks and the hours before FOMC and this comes along with rising bond yields. This combination of fact and words after all pushed the greenback lower but it seems that this would be short lived.

USD/JPY fell to 109.60 as a reaction of Fed’s decision but then bounced to currently trade at 109.95. Technically speaking the short-term outlook remain neutral to bullish. On the four hour time frame the price is developing above its bullish moving averages.RSI and stochastic retreated from their extreme overbought areas although remain flat within the positive territories. 

As long as the pair holds above 109.00 handle, the trend favors the upside with next target for the bull at 110.00, which if broken to above would open doors for testing the February’s hi at 110.45.

USD/JPY Bulls are unstoppable

The USD/JPY pair incredibly rallied today and gained around 100 pips, reaching its highest level since mid February. Safe-haven assets suffered huge selling pressure as the DXY was boosted by the US Treasury yields having marked 90.63, its highest level for over a month.

The preliminary Nikkei Manufacturing PMI for April came above the expectations and meanwhile BOJ's Kuroda pointed out that Japan should continue very strong accommodative policy for some time in order to achieve the 2% inflation goal.

Technically speaking the short term outlook remain bullish until US bull will not fail again. On the four hour time frame the price is developing well above its bullish moving averages. RSI and stochastic are locating within extreme overbought areas and moreover continue to keep upward strength.

Short term support is provided by the 38.2% Fibonacci retracement of latest November to March bearish run at 108.50. But having the strong upward traction of the moving averages it seems that the pair will avoid testing of this level and is more likely to continue towards the first resistance at 109.05 which if broke next challenge will be offered by 109.40.

USD/JPY Pushed higher but yet remains in consolidative phase

The USD/JPY pair jumped to 107.52 during the Asian session and succeeded to hold on gains for most of the last sessions, supported by rising US Treasury yields. Currently the pair is trading around 107.40 but despite the gravitation above 107.00, the  pair remains in a steady consolidative phase that has started from the beginning of April. It’s clearly seen that the pressure to the downside is limited but at the same time bulls are not strong enough to achieve impressive results.

Technically speaking the short term outlook remains neutral to bullish. On the four hour time frame the price is developing its flat moving averages. RSI is located slightly above its mid-line and is aiming north. Stochastic is visiting its overbought territory but has started to lose directional strength. 

However until holding above 107.10 the USD/JPY is favoring the upside rather than a downward move.Below this level stronger support is seen at 106.80 and is case breaking this mark to below, 106.50 is going to be tested. On the flip side, next target for the bull comes with 107.50 and higher at 107.85.

USD/JPY Lower

USD/JPY is trading lower today with current market price 106.60 amid the rising scandal between the Prime minister Abe and the Financial Minister Taro Aso regarding the sale of a state owned property on unfair low price. This issue obviously supported the Japanese Yen and during the early trading hours the pair marked daily low at 106.35 and as seen now it very far from this point.
Technically speaking the short term outlook for the pair remain neutral to bearish. On the four hour time frame the price is developing along with the flat 100-day SMA while the 200-day SMA is showing bearish slope and is providing dynamical resistance at 107.60. The 20-day SMA has started to turn north, offering first support at 106.35, where the price bottomed today. RSI is located directionless around its 60, while stochastic displays strong bearish momentum.

If closing below the daily low the pair would be poised to extend its decline towards the horizontal support at 106.00. Looking to the upside, bulls are thrilled first by the resistance at 107.10 and higher at 107.60.