On 26th Aug we published an analysis expecting US dollar to gain bullish strength and rally towards 110.75 i.e our strong prevailing resistance in accordance to the range bound behaviour. Though US dollar versus Japanese Yen did gain some hawkish momentum but was reversed from 110.44 and is currently trading below Senkou Span B of the ichimoku cloud. Since the middle of Wednesday's trading, the USDJPY has continued to trade sideways around the 110.00 level. However, today the pair is finding support above exponential moving average 50 in daily and exponential moving averages 50 & 200 in four hourly chart. Despite the Greenbacks gains in blue on wednesday, was proceeded by weak U.S data release of private payrolls and moved to 109.80 today on news of Japan PM stepping down suggests recent upmove from 109.12 has made a temporary top there and consolidation with downside bias remains for weakness to 109.60, then 109.42. 

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

Today the following fundamentals are awaited with bearish weakness on charts showing that no strong figures can be expected but still if NFP surprised us, 110.75 will be targeted; Average Hourly Earnings m/m ,Non-Farm Employment Change, Unemployment Rate,  Final Services PMI, ISM Services PMI. The extended range bound - consolidated behaviour of trading above weekly and monthly pivot but below daily pivot has created temporary daily resistance at 110.08 and support at 109.83. According to our expectations, a projected direction can be confirmed only if US Dollar versus Japanese Yen provides us with a fractal confirmation and a bullish or bearish breakout at either end of the aforementioned support and resistance. Yet, the move will be limited in between the recent highs and lows 110.77 and 109.26. 

USDJPY

Sep 03 2021

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