USDJPY has been flirting with daily , weekly and monthly pivot at 109.85, 109.93 and 109.87 after providing a bearish breakout below the exponential moving average 50 and 200 in daily on Thursday - followed by a temporary hawkish move above 109.92 but the exponential moving average 200 is too strong of a resistance at the moment for the pair to break above. The dollar edged higher Friday, set for a winning week as traders reassess the likely timing of the start of the Federal Reserve’s stimulus withdrawal  helped by concerns about the strength of the global recovery, while the euro received minimal support from the European Central Bank. On a fundamental note, observing the dollar index, it rebounded to a certain extent, from last week’s low of 91.941, its weakest level since the start of August, as traders have started to reconsider the likelihood of the Federal Reserve’s tapering its bond-buying program in reasonably short order. Another major factor for dollars weakness is last Friday’s weak nonfarm payrolls which suggested that this scenario would be delayed, but since then the JOLTS survey showed a large number of unfilled job openings and initial jobless claims fell on Thursday to the lowest level in almost 18 months.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

The extended range bound - consolidated behaviour of trading between weekly, monthly pivot and 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 10 2021