In the United States, the Reuters/Michigan Consumer Sentiment Index reported a figure of 73.6 in August, beating consensus expectations of 72.4, compared with 72.3 in the previous month. According to Mark De La Paz, an analyst at FX Instructor, “The market appears to have a bullish bias in USD/JPY hourly charts. We also maintain a bearish engulfing with strong resistance at 79.51. However, a break below 79.23, the pivot point, will open a full trend reversal down towards 79.04.”
De La Paz maintains that the USD/JPY will meet calculated resistance at 79.51, 79.70, and finally 79.98. Conversely, the pair will encounter means of support at 79.23, 79.04, and 78.86.