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Japanese Yen Remains on Top of the US Dollar

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Looking at the benchmark USD/JPY currency exchange rate and above MT 4 chart, the anti-risk Japanese yen remains in control as the new week starts. Forex traders will have to decide if last Friday’s non-farm payroll data was good enough to support a recovery with the U.S. dollar (USD).

The USD/JPY Forex market remains just below the short term 21 day moving average as well as below the longer-term one hundred and two hundred (100,200) day moving averages (DMA).

The economic calendar is fairly quiet on Monday. Japan will publish monthly trade balance data as well as the monthly current account. Both are not likely to sir price volatility with the Japanese yen.

However, the anti-risk Japanese yen is likely to see some volatility from global geopolitical tensions between the United States and China. The U.S. will ban TikTok and WeChat in 45 days. TikTok is likely to bring a lawsuit against this action by Tuesday. There are also ongoing protests in Lebanon after last week’s deadly explosion destroyed large parts of their capitol, Beirut.

There is also news of further coronavirus fiscal stimulus plan in the United States. This will come via an executive order signed by President Donald Trump. This development comes after talks collapse between the Democratic and Republican political parties.

As far as other economic data is concerned, for Monday, the United States is publishing monthly JOLTS jobs openings data. The European Union will release their monthly Sentix consumer confidence gauge and the United Kingdom will publish their monthly BRC retail sales data.

Daily Japanese Yen Technical Analysis (USD/JPY)

Looking at the above USD/JPY price action chart, the relative strength index (RSI) is below the fifty (50) line. The key moving averages are still towards the upside with the technical upside barrier lining up at 107.40 coming into play at the 100 day moving average.

The next upside barrier comes into play at the 200 day moving average in lay at 108 yen. While below 106 yen, support levels are sparse. The first downside barrier comes in to play at 105.35 with the next downside barrier lining up at 105 yen.

About David Frank

David has his MA and PhD in Economics. He is a technical analyst who has been trading in the Forex world for over a decade. As an analyst and trader, David believes in the big picture by blending together technical analysis with the fundamentals behind the scenes in the Forex and Bond markets. David’s trading strategy is unique. He blends an understanding of fundamental and macroeconomics with technical analysis to offer a unique view into Forex. He applies several strategies including carry long positions, to take advantage of high yields in non-volatile markets, as well as using quicker, chart related analysis for day trading.

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