7 August USDJPY Short-term Technical Analysis: Pair rebounds from 111.00 but still faces pressure


The USDJPY pair bottomed earlier today at 110.97, the lowest level in a week and then bounced to the upside, following the beginning of the US session. What is next? The following 7 August USDJPY Short-term Technical Analysis reveals.

7 August, OctaFX – The recovery from the lows was capped below 111.25. As of writing was trading at 111.15, on its way to the lowest daily close since July 30. 

USDJPY Fundamental Highlights

Higher US yields pushed USDJPY to the upside. The 10-year climbed to 2.97%, posting the first move higher after 3 days of correction.

The yen was losing ground across the board also weakened by a rally in Wall Street. The Dow Jones was up 0.61% and the Nasdaq was rising 0.21%. 

The US Dollar Index was down 0.20% on Tuesday retreating after testing yesterday a key level. The DXY failed to break above 95.50/60, the area that capped the upside during the previous two months. The correction from the top found support around 95.00. 

7 August USDJPY Short-term Technical Analysis 

To the upside, resistance levels might be located at 111.25 (20-hour moving average), 111.30 (short-term trendline) and 111.50. On the flip side, support could lie at 111.00, 110.85 and 110.55/60. 

Disclaimer

This article about 7 August USDJPY Short-term Technical Analysis was provided by OctaFX. It should substitute for professional marketing consulting. Forex margin trading involves substantial risks. Forex margin trading exposes participants to risks including, but not limited to, changes in political conditions, economic factors, and other factors. All of which may substantially affect the price or availability of one or more foreign currencies.

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