USD/JPY day by day chart
It has been a recurring theme this week to see the Japanese yen decide up some bids within the handover from Asia to Europe. And within the general image, the yen itself is firming throughout the board regardless of the greenback additionally holding its personal towards the remainder of the main currencies bloc. And that comes regardless of Treasury yields holding comparatively regular in the previous couple of days.
There’s not a lot of a significant catalyst behind the drive decrease in USD/JPY. However one can argue that dip consumers have misplaced a lot of their urge for food, after Japan intervened available in the market on 11-12 July. That led to a break under the important thing trendline assist (white line) for this 12 months. And inevitably, that’s sapping a lot of the constructive momentum in USD/JPY.
The most recent drop right this moment is a vital one because it not solely threatens a break beneath the 155.00 mark.
However the 100-day shifting common (purple line) at 155.35 can also be seeking to give approach in the meanwhile. And that can see consumers relinquish additional management of the pair within the greater image. The final time the pair traded under the 100-day shifting common was all the best way again in March.
The June low of 154.52 might be a minor assist degree to observe subsequent. That earlier than we get to the 38.2 Fib retracement degree at 153.66 probably.
It appears to be like just like the yen would possibly nonetheless keep buoyed till we get nearer to the BOJ coverage assembly subsequent week no less than. Are we establishing for a promote the actual fact commerce right here for the yen?
