Fundamental Analysis of USD/JPY for August 7, 2017

USD/JPY has been quite volatile recently at the edge of breaking below 110.00-60 support area. Recently after the positive Non-Farm Employment Change report published on Friday at 209k which was better than expectation of 182k, USD has surged higher by engulfing recent price action at the edge of the 110.60 support area making last bearish breakout to a false break whereas at the same day JPY Average Cash Earnings was published was published with negative value at -0.4% from previous positive value of 0.6% which was expected to be at 0.5%. Today JPY Leading Indicator report was published with an increased value at 106.3% from the previous value of 104.6% which was expected to be at 106.2% which did help JPY to stop the bullish momentum in the pair but it is expected to be quite shorter in duration. On the USD side, today there were no important economic events other than FOMC Member Kashkari's speech who is going to speak about nation's key interest rate and future monetary policy of the country which is expected to be hawkish in nature which might result in further gains on the USD side.

Now let us look at the technical view, the price is currently residing above the support area of 110.00-60 which is expected to lead the price higher towards 112.30 resistance level before price continues its bearish trend. As the price has been correcting itself for a longer period and still residing inside the range of 110 to 115 area the corrective volatile structure is expected to continue further. If the price breaks below 110.00 with a daily close further bearish movement with a target towards 108.50 is expected in the coming days.


The material has been provided by InstaForex Company -