Today we would take a look at the USD/JPY currency pair. Ever since the beginning of the month the pair has been moving up and down within a narrow channel.
Regarding the American dollar, right now it is supported by reassuring reports on inflation in the United States, which is rising steadily. This only confirms that the Federal Reserve is most likely going to implement two interest rate increases before the year’s end. Moreover, the dollar is also rising because of its status as a safety asset amid the trade war worries. Today we expect the consumer price index statistics from the US, which bear a high important on our pair.
Right now there isn’t much affecting the Japanese yen. Japan continues to struggle economically with its low inflation and stagnant growth. There was recently an indication that US President Donald Trump might impose tariffs on Japan. There still isn’t much information available about this, but if it comes to that, the Japanese economy might be hard-pressed.
In terms of the daily chart today we have a pivot point for the USD/JPY pair located at 111.35, with the pair currently trading slightly above it. We expect the rate to continue rising, so look towards the nearby daily resistance levels at 111.58 and 111.89. In case the yen strengthens, look to the supports at 111.04 and 110.81. The indicators of technical analysis recommend a strong buy position.
