USD/JPY Technical Analysis: Neutral Stability Awaiting News

Mahmoud Abdallah

Investors' sentiment improved slightly, which gave the USD/JPY the opportunity to correct upwards, reaching the resistance level of 110.38. This was before settling around the level of 110.24, where the recent risk escaping operations pushed it towards the support level 109.06. What concerns investors and markets currently is the extent of the rapid spread of the Corona Delta variable. This week, US President Joe Biden expressed his deep frustration at the slowing rate of COVID-19 vaccination in the US, and pleaded that it was "very important" for Americans to step up and get vaccinated against the virus as it rises again. Biden, speaking Wednesday evening at a televised town hall in Cincinnati, said the public health crisis has largely turned into an unvaccinated ordeal as the spread of the delta type has led to an increase in infections across the country. “We have a pandemic for those who haven't been vaccinated — it's essential, that simple,” the president said, also expressing optimism that children under 12 would agree to be vaccinated in the coming months. But he showed exasperation that many eligible Americans were still reluctant to take a chance. Nearly all hospitalizations and deaths in the United States are among the unvaccinated, but COVID-19 cases have nearly tripled in the United States over two weeks amid an onslaught of misinformation about vaccines that is overwhelming hospitals, stifling doctors and pushing clergy into battle.

Across the United States, the seven-day circulating average of daily new cases over the past two weeks rose to more than 37,000 on Tuesday, compared to less than 13,700 on July 6, according to data from Johns Hopkins University. Only 56.2% of Americans have received at least one dose of the vaccine, according to the Centers for Disease Control and Prevention. From Japan, there is great fear of the rapid spread of the Corona virus among the sports delegations that have started entering the country for the Olympic Games, which start tomorrow, Friday.

According to the technical analysis of the pair: The stability of the price of the USD/JPY currency pair above the 110.00 psychological resistance will support the bulls to move towards higher resistance levels because it stimulates more buying operations. The closest resistance levels for the pair are currently 110.45 and 111.20, respectively. On the downside, and according to the performance on the daily chart, the 108.80 support will remain the most important for the bears to regain control of the performance again. The currency pair will be affected today by the risk appetite of investors, as well as the reaction from the announcement of the US weekly jobless claims and the number of existing home sales.

USDJPY

Mahmoud Abdallah
Mahmoud has been working fulltime in the Foreign Exchange markets for 12 years. Offers his analysis, articles and recommendations at the most renewed Arabic websites specialized in the global financial markets, and his experience gained a lot of interest among Arab traders. Works on providing technical analysis, market news, free signals and more with follow up for at least 12 hours a day, and aims to simplify forex trading and the concept of trading for his audience.

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