USD/JPY analysis: yen back on the bullish track

Valeria Bednarik FXStreet

USD/JPY Current price: 109.79

Down for a second consecutive day, the USD/JPY pair settled at 109.79, not far from a daily low of 109.61, after an early advance up to 110.36. The advance was backed by the Philly Fed manufacturing index, which surprised to the upside by climbing to 18.9 for the current months against expectations of 18.5. Also, weekly unemployment claims fell to 232K for the week ending August 14, beating expectations of 240K. Later news showed that US industrial production expanded 0.2% in July, but manufacturing production contracted 0.1% MoM whilst the capacity utilization rate stayed at 76.7%. Rumors on another Trump advisor resigning, alongside with plummeting equities and yields, fueled yen's gains later on the day, now poised to continue advancing. The 4 hours chart shows that the pair met selling interest around a bearish 100 SMA, whilst technical indicators maintain a strong bearish momentum within negative territory, all of which favors a new leg lower for the upcoming sessions, firstly towards the 108.80 level, while a break below it should lead to a test of the 108.00 region.

Support levels: 109.30 108.80 108.40

Resistance levels: 110.00 110.35 110.70

View Live Chart for the USD/JPY

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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