Current trend
USD is marginally strengthening against JPY in Asian trading, correcting after a moderate decline late last week, when a weak US labor market report for August triggered a new wave of sales, which, however, was limited by weak data from Japan. In particular, Jibun Bank Services PMI in August fell sharply from 47.4 to 42.9 points, which turned out to be worse than the forecasts.
Another negative factor for JPY was the news that Japanese Prime Minister Yoshihide Suga will step down after a significant downgrade of his rating after the Olympic Games ended. Suga has repeatedly been harshly criticized for his principled position on this issue.
Support and resistance
Bollinger Bands in D1 chart demonstrate flat dynamics. The price range is almost unchanged, but it remains rather spacious for the current rather low level of activity in the market in the short term. MACD is declining keeping a weak sell signal (located below the signal line). The indicator is trying to consolidate below the zero level. Stochastic keeps a downward direction but is already approaching its lows, which indicates the risks of oversold USD in the ultra-short term.
To open new trading positions, it is necessary to wait for the signals from technical indicators to be clarified.
Resistance levels: 110.00, 110.29, 110.68, 111.00.
Support levels: 109.57, 109.34, 109.00, 108.71.
USD is marginally strengthening against JPY in Asian trading, correcting after a moderate decline late last week, when a weak US labor market report for August triggered a new wave of sales, which, however, was limited by weak data from Japan. In particular, Jibun Bank Services PMI in August fell sharply from 47.4 to 42.9 points, which turned out to be worse than the forecasts.
Another negative factor for JPY was the news that Japanese Prime Minister Yoshihide Suga will step down after a significant downgrade of his rating after the Olympic Games ended. Suga has repeatedly been harshly criticized for his principled position on this issue.
Support and resistance
Bollinger Bands in D1 chart demonstrate flat dynamics. The price range is almost unchanged, but it remains rather spacious for the current rather low level of activity in the market in the short term. MACD is declining keeping a weak sell signal (located below the signal line). The indicator is trying to consolidate below the zero level. Stochastic keeps a downward direction but is already approaching its lows, which indicates the risks of oversold USD in the ultra-short term.
To open new trading positions, it is necessary to wait for the signals from technical indicators to be clarified.
Resistance levels: 110.00, 110.29, 110.68, 111.00.
Support levels: 109.57, 109.34, 109.00, 108.71.