Today we would take a look at the USD/JPY pair. The rate of this pair doesn’t have a clear path right now and we see quite a few changes in the trend.
The Japanese yen still goes through short cycles of strength and weakness based on what is going on in the world. Because both China and the United States seem unwilling to enter a trade agreement, the markets are very uncertain. In turn, this pushes investors towards safety assets such as the JPY. On days with negative news the yen takes over the dollar. Today seems to be one of those days.
The most important factor for the American dollar today is the publication of the Consumer Confidence index later in the afternoon. Due to the worsening relationship between the United States and China, and the two countries’ failure to reach a trade agreement, investors expect to see a decline in this report. If the numbers are lower than expected (the forecast is 129), this will show that the US economy is under a lot of pressure. As a result, the USD may weaken.
In terms of the daily chart, we have a pivot point for the pair located at 105.72, with the pair trading above it currently. The support levels lie at 105.12 and 104.25, while the resistances are located at 106.58 and 107.19. The indicators of technical analysis recommend a strong sell in the daily term.
