The USDJPY pair extended its steady decline from an intraday high level of 111.36 and is currently placed at the lower end of its daily trading range. Will the downside continue? What does the latest 28 August USDJPY Technical Outlook explain?
28 August, OctaFX – The prevalent greenback selling bias, with the key US Dollar Index falling to fresh monthly low, below mid-94.00s, failed to assist the pair to build on its early up-move.
USDJPY Fundamental Highlights
Even a goodish pickup in the US Treasury bond yields failed to ease the USD bearish pressure, with traders also shrugging off a continuous improvement in investors’ appetite for riskier assets.
The risk-on mood was evident from a positive trading sentiment around equity markets, which tends to undermine the Japanese Yen’s safe-haven appeal but did little to lend any support to the major.
On the economic data front, the US goods trade balance data came in to show a larger than expected deficit of $72.20 billion for July and failed to provide any immediate respite for the USD bulls.
Today’s US economic docket also features the release of Conference Board’s consumer confidence index and might assist traders to grab some short-term opportunities.
28 August USDJPY Technical Outlook
Valeria Bednarik, FXStreet’s own American Chief Analyst explains:
“Technically, the risk is skewed to the downside, as the pair remains unable to surpass the 111.40/50 region, while, in the 4 hours chart, selling interest keeps limiting the upside around the 200 SMA, currently flat at around 111.30.”
“In the same chart, technical indicators have lost directional strength, the Momentum below the 100 level and the RSI currently at 53 with a modest downward slope, while the 100 SMA is also horizontal at around 110.85. A softer tone in equities and yields could be the catalyst for a bearish breakout, with a slide below the 110.80/90 region exposing the 110.00 figure,”
she adds further.
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