For six trading sessions in a row, the price of the USD/JPY currency pair is moving within the range of an ascending channel, after which it tested the resistance level 110.15 in early trading today.
The currency pair's gains came from the recovery of the US dollar until the monetary policy decisions of the US Federal Reserve are announced tomorrow, Wednesday.
In addition to the weakness of the Japanese yen, which is facing a state of instability regarding the slow pace of Japanese vaccination, the increase in epidemic infections, and fears that the upcoming sporting event in the country will lead to the collapse of the health system. Japanese Prime Minister Yoshihide Suga said he was reassured by the other G7 leaders who showed "strong support" for his determination to host the Tokyo Olympics next month.
Suga told reporters while in Britain for the G7 summit that he had made clear to other leaders Japan's commitment to ensuring, through anti-virus measures, that the Games were safe and secure. "I am reassured by the strong support I have received from all the other leaders," Suga said on Sunday before returning to Tokyo. "I have renewed my determination to make the Tokyo Games a success at any cost," he added.
With the Olympics approaching in about 40 days, Tokyo and other Japanese metro areas are under a state of emergency due to the number of injuries and the strain on medical systems. Japan's vaccinated are starting to recover, but less than 5% of the population has been fully vaccinated within the past week. Suga is expected to decide later this week whether to extend or lift emergency measures in Tokyo and other areas due to expire on June 20.
Japan has recorded 774,000 cases of COVID-19 and 14,000 deaths.
In the United States, the country's death toll from the epidemic is approaching the 600,000 mark. US President Joe Biden acknowledged on Monday during his visit to Europe, saying that while new cases and deaths drop dramatically in the United States, "there are still a lot of lives lost," and "now is not the time to let our guard down. . In terms of vaccination, the average US dose was about 870,000 injections per day in early June, down sharply from the highest level of 3.3 million injections per day on average in mid-April, according to the CDC.
According to the technical analysis of USD/JPY: Testing the price of the USD/JPY currency pair for the psychological resistance level of 110.00 had the bulls' control over the performance increases and therefore the pair's purchases will increase to push towards higher peaks. The nearest resistance levels are currently for the pair 110.30, 111.00 and 111.65, respectively. These are important levels that confirm the strength of the current bullish correction.
On the other hand, the bears will not control the performance without moving towards the support level 108.80. The US dollar will be affected today by the release of US retail sales figures, the producer price index and the US industrial production rate. With the passing of the interaction with the data, the currency pair may move in narrow ranges until the US Federal Reserve announces its monetary policy decisions tomorrow.