USD/JPY continues to trade at high levels on Tuesday, with the pair trading just below the 104 line. In Japan, the Services Producer Price Index posted an impressive 3.7% gain, matching the forecast. Over in the US, Core Durable Goods declined by 0.8%, but Durable Goods Orders set a monthly record with a huge jump of 22%.
When it comes to forex trading these days everyone should know the rules by now: the central banks dictate market direction. Last week’s Economic Symposium in Jackson Hole, Wyo., will be regarded as a watershed moment for the eurozone’s survival. Despite Federal Reserve Chair Janet Yellen’s “neutral or less dovish” tone, it was “super” Mario Draghi’s assertion that the European Central Bank (ECB) stands ready to act again that has quickened the pulse of capital markets.
13::15GMT - Though the mkt. broke the 0.9139 sup., downside was limited to 0.9135 before recovery back to the day high at 0.9164. Clearance of the latter should be s/term positive and we could then see a retest of Mon's high at 0.9178. Sup. is at 0.9135.N.I.