USD / JPY Current price: 106.35
- Japan will open its calendar on Wednesday, with the business services price index.
- Wall Street is mixed, with the S&P hitting new records but the DJIA in the red.
- USD / JPY ends the day with gains above the 106.00 level.
The USD / JPY pair ends Tuesday with substantial gains in the 106.35 price area, after peaking at 106.57. Pair retains intraday gains despite poor Wall Street performance, as S&P hit another record high, DJIA closed in the red. US indices were affected by report indicating US consumer confidence has plunged in August. Meanwhile, the pair found support in government debt yields as Treasury yields were steadily higher, with those on the 10-year note hitting a one-week high of 0.72%.
Japan will open its macroeconomic calendar on Wednesday with the release of the July Business Services Price Index, previously at 0.8%. In addition, the country will release the final version of the leading economic index for June, expected unchanged at 85, and the coincident index for the same month.
Short-term technical outlook USD / JPY
USD / JPY stabilized above the 61.8% retracement of its last daily decline, measured between 107.04 and 105.09, at 106.29, maintaining the immediate support level. In the 4-hour chart, the pair is now holding above all of its moving averages, which lack any clear directional strength anyway. Technical indicators have lost their bullish potential with Momentum dropping and RSI consolidating around 68. The rally will likely continue on an extension beyond 106.70.
Support levels: 106.30 105.90 105.50
Resistance levels: 106.70 107.05 107.40
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