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USD/JPY: USD grows ahead of statistics publication

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  • USD/JPY: USD grows ahead of statistics publication

    Current trend

    USD is showing moderate gains against JPY in Asian trading, testing strong resistance at the psychological level of 110.00. USD is appreciating ahead of the publication of the August data on the dynamics of consumer inflation, which will help assess the prospects for tightening the monetary policy by the US Federal Reserve until the end of this year.

    In turn, the data from Japan exert some pressure on JPY's positions. The day before, investors reacted negatively to a sharp slowdown in industrial inflation. In August, the Producer Price Index showed zero dynamics after increasing by 1.1% MoM in July. Analysts had expected increase by 0.2% MoM. The Producer Price Index in annual terms also slowed down from +5.6% to +5.5% YoY.

    Support and resistance

    Bollinger Bands in D1 chart demonstrate flat dynamics. The price range is changing slightly, but remains rather spacious for the current level of activity in the market. The MACD indicator is stretching along the zero line, indicating the approximate balance of power in the short/ultra-short term. Stochastic demonstrates a similar dynamics with a slightly larger range of motion. At the moment, the indicator is trying to reverse towards growth, reacting to the emergence of "bullish" sentiment in the ultra-short term.

    The development of uptrend is possible in the near future.

    Resistance levels: 110.29, 110.68, 111.00, 111.34.

    Support levels: 110.00, 109.57, 109.34, 109.00.