Today we would take a look at the USD/JPY pair. Last week the trend managed to change towards a bullish one again, though the overall outlook for the pair remains mixed.
The situation of the Japanese yen remains more or less the same. There have been no signals from the Bank of Japan regarding a policy change, and economic reports still indicate a tense picture of low inflation and growth rates. The major factor in favor of the strengthening of the JPY is the trade conflict between the United States and China, which has taken a turn for the worse. Currently the dollar has more momentum and was able to take charge of the rate, but the yen is posed for appreciation at any moment, given the chance.
The American dollar is undergoing another round of strengthening. The USD, like the JPY, is an instrument traders in which like investing in times of trouble, though some lukewarm reports lately were able to weaken the dollar temporarily. Right now it is surging again on news from the Federal Reserve that despite the slightly disappointing data, the central bank does not intend to lower the interest rate in the US, which is something investors were preparing for.
In terms of the daily chart, we have a pivot point for the pair located at 110.07. The support levels lie at 109.82 and 109.57, while the resistances are located at 110.32 and 110.57. The indicators of technical analysis are currently quite mixed and cannot issue a confident recommendation, so we need a wait-and-see approach for the moment.
