Bad moods and difficult situation in Iraq and Ukraine discourage markets when it comes to investing – it pushes USD/JPY down to the vicinity of last week lows. Early trading today allowed a slight rebound, however the situation is still tense and we advice to be cautious when considering “risk buying”.
On today’s chart, such a steep trend line was shown deliberately – it signals a really jerky mood of investors nowadays on positively correlated USD/JPY pair. The most of growth trend lines were broken and in the same time supply trend lines gained in importance.
102.60 turns out to be a strong resistance, which could not be overcome on Thursday or either on Friday. A good support in the vicinity of 102.30 – it caved for a short period of time, but finally has been maintained. Another demand area around 102.00/07.
This week the geopolitical situation will set the tone again. We should take a closer look also on the information about the dollar coming from FOMC minutes (Wednesday), PMI readings (Thursday) and Jackson Hole symposium as well.