Today we would take a look at the USD/JPY currency pair. In the past week the pair has been more or less stable around the level of 107.30, with small fluctuations up and down, but now we’re seeing a slight upward movement.
Looking at the American dollar, not much has changed. Economic fundamentals from the United States continue to come in strong. Inflation is steadily growing, so we can expect the Federal Reserve to continue with their hawkish policy and schedule another interest rate increase. Nevertheless, political factors continue to offset the good done by the economy. Other than the recent trade dispute with China, right now President Trump is pressured by the investigation into Russia’s possible meddling in the US presidential elections. Rumor has it that the President is trying to have Mueller or his supervisor Rosenstein fired.
Meanwhile, the Japanese yen continues to be supported by the strong Japanese economy. We do not expect any major announcements from the land of the rising Sun, so the pair’s movement will be influenced by the dollar alone.
In terms of the daily chart, today we have a pivot point for the pair located at 107.20. The pair is currently trading well above that level, so we expect it to test the resistances at 107.61 and perhaps even 107.83. If the pair drops below the pivot, then look for the support levels at 107.01 and 106.79. The indicators of technical analysis unanimously agree on a strong buy signal.
