USD/JPY: mounting pressure in dull trading
|USD/JPY Current price: 108.97
The USD/JPY pair opened the day with a positive tone, advancing up to 109.41 but quickly turned south amid the soft tone in equities and yields. With no major releases in Japan or the US, the dominant bearish trend remains firm in place, although the limited volume at the beginning of the day maintains the pair within a restricted range. The just released US Chicago Fed National Activity index for July, came in at -0.5%, below the previous 0.9% and the expected -0.4%, adding pressure to the greenback ahead of Wall Street's opening. Technically, the pair is at its daily lows just a couple of pips below the 109.00 level, clearly bearish according to the 4 hours chart, as the price remains well below its 100 and 200 SMAs, both heading south above the current level, whilst technical indicators resumed their declines within negative territory after correcting oversold conditions from early Friday. June's low is the immediate support at 108.80, with a break below it exposing 108.12, this year low. As usual, much of yen's behavior will depend on how T-yields act today.
Support levels: 108.80 108.45 108.10
Resistance levels: 109.30 109.70 110.05
View Live Chart for the USD/JPY
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