Today we would direct our attention to the USD/JPY currency pair.
Yesterday the dollar lost some positions versus the Japanese yen. The area below 108.50 provides a strong support for the USD/JPY pair so it is likely that the prices will rebound. We can also view this lower area as a consolidation - remaining above it shows a good promise of a renewal for the bullish movement of the pair. If the prices fall below this level, however, we can expect a further retreat to lower support areas around the level of 105. In general, this pair is bound to remain volatile for some time due to the current economic climate.
There are a number of reports expected today that may affect the movement of the USD/JPY pair. These include the Bank of Japan’s CPI, as well as reports on unemployment rates in Japan and household spending. From the United States we are awaiting reports on consumer confidence and other economic data. If you time your trading around the release of these reports, you can see more volatility in the USD/JPY pair.
As of this article’s publication the USD/JPY pair is trading below the pivot point, around 108.40. Both the moving averages and the technical indicators agree on a strong sell sign.
