Pressure On USD/JPY
LiteForex Europe | Jun 22, 2017 05:22AM ET
On Monday the pair strengthened in view of statements by FOMC representative William Dudley about the expedience of toughening of the monetary policy in the current year. On the next day the President of FOMC Chicago Charles Evans called for a more cautious position and for abstaining from increasing the interest rates until the end of the current year as the level of political risks in the USA is very high, and recent macroeconomic statistics does not correspond to plans and expectations of the American regulator. The market reacted to this statement by the fall of USD against the majors. Thus, the comments of FOMC officials caused market uncertainty that may negatively influence the pair in the medium term.
Today the Japanese Ministry of Finance published a report on investments into foreign bonds that reflected the value of net sales of securities and the inflow of capital into the economy. This put pressure on USD/JPY. The key event of today will be the release of data on jobless claims by the US Department of Labor. If the negative outlook proves to be true, the pair will continue to fall.
On D1 chart the pair is trading in the upper part of Bollinger Bands. The indicator has is directing sidewards while the price range is narrowing indicating a possible change of the current trend. MACD histogram is correcting in the positive zone. Stochastic has left the overbought zone and formed a strong sell signal.
Support levels: 108.75, 109.27, 109.75, 110.64.
Resistance levels: 111.49, 111.87, 112.40.
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