August 26, Friday, the yen recovered a bit after consumer prices, statistics from Tokyo presented the fundamental measure down over than expected and with the concentration now wrapped up on a meeting of central bankers in the U.S. state of Wyoming later in the day with the Fed chief scheduled to give opinions.
USD/ JPY moved at 100.47, down 0.05%, whereas AUD/USD traded at 0.7629, up 0.14%.
On Friday, the greenback edged down to leave a slight movement on the week, with investors concentrated on a speech later the day by the chair of the Federal Reserve, that may give clarity on whether U.S. interest rates will increase or not this year.
What to expect?
For several days, the USD/JPY pair did not display any strong changes, to remain changing within tight track keeping its strength below 100.70 level, which retains the correctional bearish trend situation effective until now, sustained by the negative pressure given by the EMA50, besides the negative indications coming by stochastic.
For that reason, we are anticipating for negative trading in the upcoming sessions, and the goal starts at 98.00 and extend to 94.76, reminding you that breaking 100.70 levels will stop the recommended decline and lead the price for recovery attempts that its main goal starts at 104.45.
Projected trading range for today is between 99.00 support and 101.00 resistance.
On August 24, 2016, the yen edged lower in early Asia in advance of corporate services price data with the market watchful ahead of statements by the Fed chief this Friday. USD/JPY moved at 100.48, up 0.03%, although AUD/USD traded at 0.7615, up 0.03%. In Japan, the corporate services price index is in line with a 0.1% gain seen YoY.
While the US greenback was suffering, damages of different degrees across the board and at the disadvantages. The approaching week features US durable goods orders, updated GDP reads from the UK and the US and the Jackson Hole Symposium also.
In the minutes of meeting revealed, Other Fed members want a rate hike sooner, however, in spite of being rather vocal, they are a small minority.
Although most data were good, the influence of the poor retail sales from the prior week and the dovish Fed influenced on the greenback. In the UK, post Brexit data was positive, helping the sterling rallied. The euro also appreciated this, and the yen continued fighting the 100 line. The Canadian dollar managed the pack of commodity currencies as oil prices continued their progressive grinds.
It was during the course of the day on Thursday, that the USD/JPY pair firstly declined, but rotated right back around to form a bit of a hammer. I anticipated that it is only a matter of time before we see bounces from time to time.
The near term pullbacks will propose a short term buying prospect. The BoJ will be more expected to be involved in below the 100 level no matter how. I firmly believe that we will finally see buyers conquest. However, you need to be patient waiting on a larger move.
The Fed chair's talk at the Kansas City Fed's economic symposium in Jackson Hole, Wyoming, is undoubtedly the most expected event in a particularly sluggish August for the market.
Fed Chair Yellen's speech at Jackson Hole on Friday morning threatens to have a deep outcome of the currency market.
Will she be happy to see the year 2016 goes by without a single rate hike? Of course, the critical question is whether Fed Chair Yellen is inclined toward increasing the key federal funds rate goal this year. Or she might shock markets by indicating an interest rate hike is approaching early next month.