The USDJPY currency pair, currently at a level of 145.378, has lost its previous momentum and is now declining below the mid-145.00s range. This decline comes after reaching a high of 146.56 earlier in the year.

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for FREE REGISTER to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level1)]

• USD/JPY loses momentum below mid-145.00s, retracing from a Year-To-Date (YTD) high of 146.56.

The pair currently trades last at 145.378.

The previous day high was 146.56 while the previous day low was 145.62. The daily 38.2% Fib levels comes at 145.98, expected to provide resistance. Similarly, the daily 61.8% fib level is at 146.2, expected to provide resistance.

The USD/JPY pair loses its traction below mid-145.00s heading into the early European session on Friday. The upbeat Japanese data supports the Japanese Yen against its rivals. The major pair retraces from a Year-To-Date (YTD) high of 146.56 and currently trades near 145.18, losing 0.45% on the day.

The Japanese National Consumer Price Index (CPI) for July YoY, released by the Statistics Bureau on Friday, came in at 3.3%, above market expectations of 2.5%. Meanwhile, the National CPI excluding fresh food and energy increased to 4.3% from 4.2%, in line with market expectations of 3.1% YoY. It’s worth noting that the Bank of Japan (BoJ) keeps policy ultra-loose monetary policy while enabling the 10-year bond yield cap to move more flexible. The monetary policy divergence between the BoJ and Fed might exert pressure on the Japanese Yen against its major rivals and could be a headwind for the USD/JPY pair.

On the other hand, the number of unemployment claims fell for the week ending on August 12, indicating that the labor market remains tight. The number of US jobless claims declined to 239K for the week ending on August 12. The figure came in slightly below the market expectation of 240K, the US Bureau of Labour Statistics (BLS) reported on Thursday. Meanwhile, the Continuing Jobless Claims rose to 1.716 million. Finally, the Philadelphia Federal Reserve’s Manufacturing Survey for August improved to 12, above the market consensus of -10 and -12 prior.

The US data strengthen the case for another interest rate rise by the Federal Reserve (Fed). FOMC Minutes emphasized on Wednesday that inflation remained unacceptably high and additional monetary policy tightening may be required to bring inflation to the target.

Looking ahead, the USD/JPY pair remains at the mercy of USD price dynamics due to the lack of economic data release from both the US and Japan. Investors will continue to monitor news about China’s debt crisis, which might dampen risk appetite.

Technical Levels: Supports and Resistances

USDJPY currently trading at 145.25 at the time of writing. Pair opened at 145.84 and is trading with a change of -0.4 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 143.05, 50 SMA 142.2, 100 SMA @ 139.06 and 200 SMA @ 136.5.

The previous day high was 146.56 while the previous day low was 145.62. The daily 38.2% Fib levels comes at 145.98, expected to provide resistance. Similarly, the daily 61.8% fib level is at 146.2, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 145.45, 145.06, 144.51
• Pivot resistance is noted at 146.39, 146.95, 147.34

[/s2If]
Download Nehcap EAWe have two EAs that are operational on our LIVE accounts.

1. EA-FIX: Check out the details here. Download EA-FIX . EA-FIX is a non-grid HFT scalper.
2. EA-GROWTH: High quality low dd EA using trend grids. Download EA_GROWTHJoin Our Telegram Group