Tuesday, August 9, 2016

USD/JPY ratio is showing gains in short positions on Tuesday

USD/JPY ratio is showing gains in short positions on Tuesday. Currently, long positions have a strong majority (66%), indicative of trader bias towards USD/JPY breaking out and moving to higher ground.•USD/JPY has shown limited movement in the Asian and European sessions. The pair has posted slight losses in the North American session
•102.36 was tested earlier in resistance and is a weak line
•101.20 is providing support
•Current range: 101.20 to 102.36
The Japanese yen continues to have a quiet week and has posted small losses in the Tuesday session. In the North American session, USD/JPY is currently trading at the 102 line. On the release front, Japanese Preliminary Machine Tool Orders posted another sharp decline. Later in the day, Japan releases the Producer Price Index, which measures inflation in the manufacturing sector. The markets are braced for a sharp decline of 4.0%. In the US, there are no major events on the schedule. Preliminary Unit Labor Costs declined 0.5%, while Preliminary Nonfarm Productivity posted a gain of 2.0%.