Technical Chart of the day: Hourly USDJPY – Bullish
The White House has now reached an agreement with Senate Democrats and Republicans. U.S. Senate majority leader Mitch McConnell said the package, expected to be worth $2 trillion had been agreed and would be put to a vote later today. The dollar slipped for a third consecutive session as a result while equity markets rose sharply following the news.
Japanese Prime Minister Shinzo Abe, along with the International Olympic Committee, agreed to delay the Tokyo Games by a year, the first postponement since the modern games began in the 19th century dealing another blow to the Japanese economy which was already under strain. Investors returned to riskier assets following the US package taking away from Yen’s safe-haven status.
Both currencies are under pressure leading so far to fairly steady trading.
- On a technical perspective, the trend is bullish, with prices above the 20, 40, 100 and 200 EMA.
- Prices failed to break below the 40 EMA and rebounded. This indicates that buying strength is present.
- Based on the pivot point analysis, prices above the pivot levels. This signifies bullishness.
Resistance: R1: 111.924, R2: 112.631, R3: 114.261
Support: S1: 110.294, S2: 109.371, S3: 107.741