Weekly technical and trading outlook – USD/JPY
|Weekly USD/JPY technical outlook
Last Update At 08 Aug 2022 00:04GMT.
Trend daily chart
Sideways
Daily indicators
Falling
21 HR EMA
134.28
55 HR EMA
133.75
Trend hourly chart
Up
Hourly indicators
Easing fm o/bot.
13 HR RSI
69
14 HR DMI
-ve
Daily analysis
Consolidation with upside bias.
Resistance
136.33 - Jul 27 low (now res).
135.58 - Jul 22 low (now res).
135.49 - Last Fri's high.
Support
135.54 - Last Wed's high (now sup).
133.89 - Last Wed's Asian high (now sup).
133.47 - Last Fri's Asian high (now sup).
USD/JPY - 135.00.. Despite last week's initial resumption of recent decline to a 7-week trough of 130.41 (Tue), price rallied in tandme with U.S, yields to 134.54 Wed b4 retreating to 132.53 Fri n then jumped in post-NFP NY to 135.49.
On the bigger picture, dlr's spectacular rally fm 2011 historic low at 75. 32 (Mar) due to co-ordinated CCY intervention by G7 central banks to weaken the yen in the aftermath of Japan's earthquake and tsunami of Mar 2011 to as high as 125.86 (2015) confirms major low has been made. Although the pair fell back to 99 .00 in mid-2016 n swung broadly sideways until 2021, price rallied in tandem with U.S. yields to a 24-year peak of 139.39 in mid-Jul b4 retreating. Last week's selloff to a 7-week 130.41 trough signals long-overdue correction has taken place . Having said that, Fri's rally to 135.49 suggests 1st leg of correction over n would head twd 137.46, abv, 138.87. Only below 132.29 risks 130.41, then 129.77.
Today, Fri's rally abv 134.54 (now sup) to 134.49 n present rising hourly indicators suggests upside bias remains for gain to 135.55/65, o/bot readings would cap price below 135.96 (61.8% r of 139.39-130.41). On the downside, only a daily close below 134.54 may risk weakness to 133.55/65 later b4 rebound.
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