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August 5, 2021

Bullish Signals, USD/JPY Rises From 3 -Month Lows

 Nearly 100 pips price spike on the USD/JPY currency pair chart yesterday, are there any traders who are ‘stuck’?


Certainly many did not expect this aggressive move in yesterday’s New York session driven by a significant change in the value of the US dollar due to focus factors.


At the beginning of the session, the price on the USD/JPY chart was seen continuing its bearish pattern until the price reached almost the level of 108.700 to record the latest low since May.


The US dollar depreciated initially after the ADP NFP employment data report for the private sector posted a weaker -than -expected reading and gave a less favorable signal for this Friday’s NFP report.


However, the price then jumped over 90 pips from the level of 108,700 up to the high level of 109.670 past the Moving Average 50 (MA50) barrier on the 1 -hour time frame to signal a bullish trend change of the price.


After US services sector survey data was published positive, the US dollar continued to be supported by signals by the Federal Reserve (Fed) for monetary policy tightening measures.


Hawkish -toned comments by the Deputy Chairman of the Fed have prompted a significant appreciation of the US dollar until the end of the New York session.



The rally continued in continued trading on Thursday with the resistance zone of 109.700 still being tested for a breakout price.


Passing the zone will strengthen the expectation for the bullish trend movement of the price to head to the next focus zone at the height of around 110.200.


A higher rise is seen to test the resistance zone at 110.600 which was tested several times on trading in previous weeks.


However, if the US dollar weakens again ahead of the NFP report, it is likely that the price could decline again to the support zone of 108,700 that was hit yesterday.