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Strong Dollar Keeps USDJPY from Falling

8/30/2022 1:46 PM

At the moment, the pair USD/JPY is correcting around 138.48.

Since the beginning of the week, macroeconomic releases have not put pressure on the Japanese currency: the unemployment rate in July remained at June (2.6%), and the ratio of the number of vacancies and applicants improved to 1.29 from 1.27 a month earlier, although analysts did not expect changes. Among the negative aspects, it is worth highlighting another decrease in the index of leading indicators, which amounted to 100.9 points instead of 101.2 points earlier. Tomorrow, data on the volume of industrial production for July will be published: according to forecasts, the figure will fall by 0.5% after rising by 8.9% in June, which could become a serious factor in pressure on the yen.

The US dollar retreated from yesterday's highs and trades around 108.700 in the USD Index. Investors continue to evaluate the speech of US Federal Reserve Chairman Jerome Powell at the economic symposium in Jackson Hole. Still, this week will be filled with statements by the heads of regional federal reserve banks, who will share their views on the prospects for national monetary policy. The local dynamics of quotations can be seriously affected by today's data on the number of open vacancies in the labor market from JOLTS, which will be published in the evening: analysts suggest that in July, the figure will decrease to 10.475M from 10.698M, which is likely to hurt the national currency.

The trading instrument moves within the global uptrend, forming a Head and shoulders pattern. Technical indicators keep a buy signal: indicator Alligator's EMA oscillation range is directed upwards, and the histogram of the AO oscillator forms bars above the transition level.

Resistance levels: 139.33, 143.00. | Support levels: 136.70, 132.20.

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