Current trend
USD is showing corrective gains against JPY, recovering from local lows since August 4, after a sharp decline at the end of last week. USD is trying to recoup after the release of disappointing data on consumer confidence in the US at the end of last week.
Yesterday, investors watched the publication of macroeconomic statistics from Japan, which contributed to the strengthening of JPY. In particular, the data reflected Japan's GDP growth of 1.3% YoY in Q2 2021, which was almost twice as strong as market forecasts. In Q1 2021, the Japanese economy showed a decline of 3.7% YoY. On a quarterly basis, GDP added 0.3% QoQ after falling 0.9% QoQ in the prior period. Industrial production in Japan accelerated in June from +22.6% YoY to +23% YoY.
Support and resistance
Bollinger Bands in D1 chart demonstrate flat dynamics. The price range expands from below, making way for new local lows for the "bears". MACD is going down preserving a stable sell signal (located below the signal line). Stochastic retains a steady downtrend but is located in close proximity to its lows, which indicates the risks of oversold USD in the ultra-short term.
Resistance levels: 109.34, 109.57, 110.00, 110.29.
Support levels: 109.00, 108.71, 108.20.
USD is showing corrective gains against JPY, recovering from local lows since August 4, after a sharp decline at the end of last week. USD is trying to recoup after the release of disappointing data on consumer confidence in the US at the end of last week.
Yesterday, investors watched the publication of macroeconomic statistics from Japan, which contributed to the strengthening of JPY. In particular, the data reflected Japan's GDP growth of 1.3% YoY in Q2 2021, which was almost twice as strong as market forecasts. In Q1 2021, the Japanese economy showed a decline of 3.7% YoY. On a quarterly basis, GDP added 0.3% QoQ after falling 0.9% QoQ in the prior period. Industrial production in Japan accelerated in June from +22.6% YoY to +23% YoY.
Support and resistance
Bollinger Bands in D1 chart demonstrate flat dynamics. The price range expands from below, making way for new local lows for the "bears". MACD is going down preserving a stable sell signal (located below the signal line). Stochastic retains a steady downtrend but is located in close proximity to its lows, which indicates the risks of oversold USD in the ultra-short term.
Resistance levels: 109.34, 109.57, 110.00, 110.29.
Support levels: 109.00, 108.71, 108.20.