USDJPY has reached Senkou Span A of the ichimoku in daily - setting its feet above 110.0 zone again with bullish momentum generated from strong fundamental figures being generated through Core Durable Goods Orders m/m and Durable Goods Orders m/m, adding 50 pips to the pair. King dollar hasnt yet provided has with a breakout at either end of the resistance and support line of ours i.e 110.70 and 109.20, yet its trading above our intraday exponential moving averages. US Dollar versus Japanese Yen has also stepped above 61.8% of fibb retracement level and is expecting positive news today during Prelim GDP q/q and Unemployment Claims due later to hit 110.70 first and extra momentum would push it towards 111.0. We also have our monthly pivot at 110.12 with a bullish closing in one hour chart, we have to see if the third time King dollar gets the strength to break above or fails again in four hourly chart from our major resistance area.

BULLISH AND BEARISH CONDITIONS / POSSIBILITIES :

After publishing the second estimate for the second-quarter GDP growth on Thursday, the US Bureau of Economic Analysis will release the Personal Consumption Expenditures (PCE) Price Index figures on Friday, August 27. Investors expect the PCE Price Index to decline to 3.5% on a yearly basis from 4% in June while forecasting the annual Core PCE Price Index, the Federal Reserve’s preferred gauge of inflation, to edge higher to 3.6% from 3.5%.The latest optimism that the continuous rise in new coronavirus cases won't derail a global economic recovery continued undermining demand for the safe-haven Japanese yen. Bulls further took cues from the recent strong move up in the US Treasury bond yields. This, along with a goodish pickup in demand for the US dollar, provided an additional boost to the USD/JPY pair.  In daily chart USDJPY has moved above exponential moving average 50 and the relative strength index is being supported by MACD with bullish strength that can push the pair higher towards 110.70 and 111.0

USDJPY

Aug 26 2021

1