USDJPY moves higher in Tuesday trading

Not enough to scare away the bears...yet.

Charts (3)

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

Happy Trading

More from Forex

From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.