6 August USDJPY Technical Analysis: Pair searching for some lift from 111.00

The USDJPY is trading into 111.30 as Monday’s Asian market session begins to wrap it up, and the US Dollar is seeing some mild lift from recent lows near the 111.00 technical level. What is next for the pair? Gain insight into this 6 August USDJPY technical analysis.

6 August, GKFX – The economic calendar is slated to be a series of mid- and low-tier showings for the Dollar-Yen pairing until Friday’s US CPI reading, a long way off as market sentiment decides which way to head for the new week.

USDJPY Fundamental Highlights

Monday’s watered-down calendar has little meaningful data to encourage volatility into the markets for the early week, though late in the day will be seeing Japan’s y/y Overall Household Spending for July at 23:30 GMT, and is expected to come in at -1.6%, a disappointing showing but expected to improve over the previous reading of -3.9%.

Last week’s Bank of Japan (BoJ) showing represented a significant re-dedication to easy monetary policy by Japan’s central bank, and the BoJ reaffirmed that it is still miles off from engaging in any kind of tapering or easing off of the monetary policy pedal.

The BoJ did widen the barriers on Japan’s 10-year government bonds while also warning markets about the bank’s intent to begin shifting some ETF purchases from the Nikkei 225 to the Tokyo Topix index, since the BoJ now owns a sizeable portion of Japan’s leading index after years of hyper-easy policy and asset purchases.

6 August USDJPY Technical Analysis

The Dollar-Yen pairing is currently pulling back from a recent swing low at the tail-end of last week’s action, though bullish action is likely to remain subdued as the USDJPY remains off of one-month highs with US CPI figures due at the end of the week.

Meanwhile, USD traders will be keeping an eye turned towards the next round of US inflation figures.

USDJPY Chart, 15-Minute

Spot rate: 111.34

Relative change: 0.12%

High: 111.35Low: 111.12  

Trend: Bullish pullback  

Support 1: 111.49 (38.2% Fibo retracement level)

Support 2: 111.85 (Friday swing high)

Support 3: 112.14 (previous week high)  

Resistance 1: 111.12 (current day low)

Resistance 2: 110.73 (previous week low)

Resistance 3: 1110.58 (July 26th low)


This article 6 August USDJPY Technical Analysis was written by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.

If such information is acted upon by you, then this should be solely at your discretion, and GKFX will not be held accountable in any way.

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