USDJPY moves higher in Tuesday trading
Gary Christie August 26, 2020 6:45 AM
Not enough to scare away the bears...yet.
The US Dollar was bearish against most of its major pairs on Tuesday with the exception of the JPY. On the U.S. economic data front, the Conference Board's Consumer Confidence Index unexpectedly declined to 84.8 on month in August (93.0 expected), from a revised 91.7 in July. New Home Sales jumped to 901K on month in July (790K expected), from a revised 791K in June.
On Wednesday, the Mortgage Bankers Association's Mortgage Applications data for the week ending August 21st are expected. Finally, Durable Goods Orders for the July preliminary reading are expected to rise 4.5% on month, compared to +7.6% in the June final reading.
The Euro was bullish against most of its major pairs with the exception of the AUD and GBP. In Europe, the German Federal Statistical Office has reported final readings of 2Q GDP at -9.7% on quarter (vs -10.1% expected). Germany's August IFO Business Climate Index was released at 92.6 (vs 92.2 expected) and Expectations Index was published at 97.5 (vs 98.0 expected).
The Australian dollar was bullish against most of its major pairs with the exception of the GBP.
The USD/JPY jumped 40 pips to 106.38 in Tuesday's trading. The day's range was 105.87 - 106.58. The pair remains inside a bearish trend channel. A break above 107.15 would call for a test of the channel resistance line while a break below 105.10 support would call for a continuation lower to test August lows at 104.20.
Source: GAIN Capital, TradingView
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