Japanese Yen Talking Points
USD/JPY is on the cusp of testing the month-to-month excessive (137.71) because it retraces the decline following the slowdown in the US Personal Consumption Expenditure (PCE) Price Index, and the trade fee could proceed to exhibit a bullish pattern because it seems to be monitoring the constructive slope in the 50-Day SMA (135.74).
Technical Forecast for Japanese Yen: Bearish
USD/JPY seems to be caught in a slim vary after snapping a five-day rally, however the trade fee could proceed to retrace the decline the yearly excessive (139.39) as lengthy because it holds above the transferring common.
Source: Trading View
USD/JPY trades again above the 50-Day SMA (135.74) after clearing the opening vary for August, with a break/shut above the 137.40 (61.8% enlargement) to 137.80 (361.8% enlargement) area elevating the scope for a run on the yearly excessive (139.39).
A break above the September 1998 excessive (139.91) opens up the 140.30 (78.6% enlargement) area, with the following space of curiosity coming in round 141.70 (161.8% enlargement).
However, USD/JPY could proceed to face vary certain situations if it fails to break/shut above the 137.40 (61.8% enlargement) to 137.80 (361.8% enlargement) area, and lack of momentum to carry above the transferring common could push the trade fee again in the direction of the Fibonacci overlap round 132.20 (78.6% retracement) to 133.20 (38.2% enlargement).
— Written by David Song, Currency Strategist
Follow me on Twitter at @DavidJSong