Current trend
USD shows a slight decline against JPY in trading during the morning session, retreating from local highs since July 27, which were updated at the end of last week amid the publication of a strong report on the US labor market for July. In particular, the American economy created 943K new jobs outside the agricultural sector, significantly exceeding market forecasts. It should be noted that this happened against the background of a sharp decline in the unemployment rate by 0.5% to 5.4%. Average Hourly Earnings in July also increased by 4.0% YoY from 3.7% YoY in June, while the forecasts assumed an increase of only 3.8% YoY.
Today, investors do not expect new drivers to appear on the market, and interesting macroeconomic statistics from Japan will appear only on Tuesday, when the July data on the dynamics of bank lending is released. In addition, analysts will pay attention to the Eco Watchers Surveys, which help assess the short-term and ultra-short-term outlook for the Japanese economy.
Support and resistance
Bollinger Bands in D1 chart demonstrate flat dynamics. The price range is changing slightly, but remains rather spacious for the current level of activity in the market. MACD indicator is growing preserving a stable buy signal (located above the signal line). The indicator is also trying to consolidate above the zero level. Stochastic retains upward direction, but is located near its highs, which indicates risks of overbought USD in the ultra-short term.
Resistance levels: 110.38, 110.68, 111.00, 111.34.
Support levels: 110.00, 109.57, 109.29, 109.00.
USD shows a slight decline against JPY in trading during the morning session, retreating from local highs since July 27, which were updated at the end of last week amid the publication of a strong report on the US labor market for July. In particular, the American economy created 943K new jobs outside the agricultural sector, significantly exceeding market forecasts. It should be noted that this happened against the background of a sharp decline in the unemployment rate by 0.5% to 5.4%. Average Hourly Earnings in July also increased by 4.0% YoY from 3.7% YoY in June, while the forecasts assumed an increase of only 3.8% YoY.
Today, investors do not expect new drivers to appear on the market, and interesting macroeconomic statistics from Japan will appear only on Tuesday, when the July data on the dynamics of bank lending is released. In addition, analysts will pay attention to the Eco Watchers Surveys, which help assess the short-term and ultra-short-term outlook for the Japanese economy.
Support and resistance
Bollinger Bands in D1 chart demonstrate flat dynamics. The price range is changing slightly, but remains rather spacious for the current level of activity in the market. MACD indicator is growing preserving a stable buy signal (located above the signal line). The indicator is also trying to consolidate above the zero level. Stochastic retains upward direction, but is located near its highs, which indicates risks of overbought USD in the ultra-short term.
Resistance levels: 110.38, 110.68, 111.00, 111.34.
Support levels: 110.00, 109.57, 109.29, 109.00.