USD/JPY analysis: yen's strength to prevail this week
|USD/JPY Current price: 109.20
The USD/JPY pair closed the week unchanged in the 109.20 region, as the positive mood from early week that drove the pair up to 110.02 was quickly reversed after the release of the FOMC Minutes, Trump's advisors woes, and the terror attacks that took place in Europe. Adding to the sour worldwide picture, US political jitters added to yen's strength these last few days, after President Trump lost several advisors in different events. His soft response to a white nationalist attack during the previous weekend put an end to two economic advisory councils, who criticized him for saying that "both sides" were to blame for the Charlottesville incident. Adding fuel to the fire, Trump's chief strategist, Stephen Bannon, left the administration on Friday. Treasury yields trimmed their early week gains to end it flat, with the 10-year note benchmark at 2.19%, a multi-week low. Despite Friday's recovery, the pair maintains its bearish tone, given that in the daily chart, technical indicators resumed their slides after failing to regain positive territory at the beginning of the week, while the price remains well below its 100 and 200 DMAs. Shorter term and according to the 4 hours chart, the pair is well below bearish 100 and 200 SMAs, whilst technical indicators barely corrected oversold conditions before losing their upward strength, also supporting additional declines ahead.
Support levels: 108.80 108.40 107.90
Resistance levels: 109.60 110.00 110.35
View Live Chart for the USD/JPY
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