The US dollar shows weak growth, trying to restore its positions. On Wednesday, the US currency showed an active decline, and the reason for the development of "bearish" trend was the publication of macroeconomic statistics from the US on consumer inflation, which slowed down from 9.1% to 8.5% in July, which turned out to be better than the markets predicted. Against this background, investors lowered their expectations regarding the increase in interest rates by the US Federal Reserve by 75 basis points during its September meeting. The consolidated forecast currently assumes a correction of only 50 basis points.
The day before, the Japanese government, which has been operating since last October, resigned in full force. The changes in the parliament were initiated by Prime Minister Fumio Kishida, explaining his decision by the need to enlist the support of voters, which has been actively declining recently against the backdrop of economic problems and, in particular, the rapid rise in the cost of food and fuel, as well as the distancing of government officials from the Unification Church organization, whose parishioner, according to reports, could be former Prime Minister Shinzo Abe. One of the reasons for the deadly assassination attempt on a politician during an election campaign in Nara prefecture is his connection with this religious movement. In any event, political uncertainty is an additional risk factor that significantly reduces the attractiveness of the yen.
Bollinger Bands in D1 chart demonstrate a moderate decrease. The price range is narrowing from above, reflecting the emergence of ambiguous dynamics in the short term. MACD, after a short rise last week, again reversed into a descending plane, forming a new sell signal (the histogram is located below the signal line). Stochastic is showing a more active decline being located in the middle of its area.
Resistance levels: 133.00, 134.00, 134.54, 135.57. | Support levels: 132.00, 131.00, 130.00, 129.39.