USDJPY Breaks Above 108 as 50 bps Rate Cut Fades Away
USDJPY rebounds for third day adding 0.28% at 108.17 as traders looking for a 25 basis point interest rate cut by Fed next week. Japan June final machine tool orders –came in at 37.9% topping expectation of -38.0% year over year prelim. Yesterday the results from National elections in Japan yesterday gave the victory to Shinzo Abe’s coalition as expected, its sixth straight victory, with its party winning over half the 124 seats, but failed to gain the supermajority that will gave him the power to change the country’s constitution.
USDJPY rebounds for third day in a row and cancels the negative momentum that drove the price down below mid 108. Immediate support for the pair stands at 107.97 the 200 hour moving average while extra support will be met at 107.52 the low from July 3. On the upside first resistance stands at 108.17 the daily high and then at 108.51 the 50 day moving average while a break above can drive prices up to 109. The 108 mark is a critical level, long positions can be opened as long as the pair trades above that figure but stop loss orders must be placed at 108 as if the pair breaks below sellers will step in.
US – China trade war tensions and global growth concerns will be the main drivers for the pair.Don’t miss a beat! Follow us on Twitter.
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