Technical Analysis 2017.08.14 - USD/JPY is the Safe-Haven Weakening?

Current trend
Initially the currency pair reached 109.65. Even though Japan’s GDP Japan reached 4.0% from the previous 1.5% YoY and 1.0% from its previous 0.3%MoM, JPY still started slipping as market sentiment calmed after the diplomatic friction between N. Korea and the US.

This mixed bag of economic data has made Japan’s economy seem uncertain to markets. GDP growth in the second quarter of 2017 was a result of ramped up consumer spending and increased internal demand The caveat is though that the bulk of this was durable goods hinting towards seasonal costs, mean this is a temporary effect and not necessarily sustainable or scalable.

Support and resistance
The pairs price surpassed the middle of the Bollinger Bands at 109.50 and is climbing to 110.05 with the correction at 23.6%. If the pair breaks through this level, growth could possibly continue to 110.80and 111.55. At this point though a reversal to August prices at 108.70 is a possibility. Technical aren’t any clearer: MACD histogram is moving into the negative zone, and Stochastic directed into the overbought zone.

USD/JPY Support levels: 109.50, 108.70, 108.00.
USD/JPY Resistance levels: 110.05, 110.80, 111.55, 112.20.

This article comprises the personal view and opinion of the STO Investment Research Desk and at no time should be construed as Investment Advice.

STO Review