Forex Marketz Daily Forex News – Fully Markets Update
Looking at the headline USD/JPY currency exchange rate, the Japanese yen (JPY) has depreciated against the U.S. dollar (USD). The yen is trading below the fifty day moving average as well as below the one and two hundred (100,200) day moving averages.
These are bearish signals for this Forex market which could point to the Japanese yen consolidating in a broad trade range against the green back. He other technical indicators, like the relative strength index (RSI) are a bit more stable.
Trade volume in the global Forex markets will be light on Monday as the United States is celebrating the Labor Day Holiday. As such, there is no economic data set to be released by the world’s largest economy on Monday. Japan will be releasing their monthly (July) leading economic indicator.
The Japanese yen is not expected to react strongly as the Bank of Japan has no plans to change its monetary policy settings with any economic data releases.
The European Union will release their monthly Sentix investor confidence gauge and the Eurozone’s largest economy, Germany, is scheduled to release their monthly industrial production numbers. Thhe United Kingdom has no macroeconomic events scheduled for release at the start of the week.
Japanese Yen Technical Analysis (USD/JPY)
Looking at price action on the above daily USD/JPY MT 4 price action chart, the first key level of technical support lines up at 106 yen. This downside barrier has held back in May and even early this current month.
A daily and sustained close below this level will bring the next downside barrier lining up at 105.15 yen into focus. The next downside barrier is in play at the late July low price point at 104.20 yen.
The first upside barrier comes into play at 106.50 yen. This is the initial, and short lived, September high price point. The next layer of technical resistance lines up at 107.10 yen. This is the mid-August high price point.
The July high price point at 107.50 yen is the next upside barrier to come into play with 108.20 yen then coming into focus.
