Friday, July 29, 2016

USD/JPY posted sharp losses in the Asian session

The USD/JPY ratio has shown slight movement towards long positions. Currently, long positions have a majority (62%), indicative of trader bias towards USD/JPY reversing directions and moving to higher ground.
•USD/JPY posted sharp losses in the Asian session. The pair has shown limited movement in the European session
•104.99 is a strong resistance line
•103.73 was tested earlier and is a weak support level. It could see further action in the Friday session
•Current range: 103.73 to 104.99
The Japanese yen has posted strong gains on Friday. In the North American session, USD/JPY is trading at 102.80. On the release front, Japanese consumer inflation and consumer spending indicators disappointed. Tokyo Core CPI posted a decline of 0.4%, while Retail Sales dropped 2.2%. The Bank of Japan surprised the markets as it did not lower interest rates at its policy meeting. The yen continues to improve following a soft GDP report in the US on Friday. Advanced GDP for the second quarter climbed 1.2%, much weaker than the forecast of 2.6%. Later in the day, we’ll get a look at a key consumer confidence indicator, with the release of UoM Consumer Sentiment. The markets are braced for the indicator to dip to 90.2 points