The USD / JPY pair is trading above the 21 SMA and 200 EMA located at 109.90. The Yen is going upwards with strong resistance at the 2/8 murray line located at 110.15.
Since August 4, the Japanese Yen has been losing ground against USD. The upward channel of USD/JPY has been tested for three opportunities and has continued to maintain its trend. However, the strong resistance of the psychological level of 110.00 has acted as a very strong top that has kept in a limited range.
The key support is found at the 0/8 murray line at 109.37. This level has stopped the fall of the pair. It seems that the Yen is preparing for a new climb to the level of 110.54 because the EMA 200 is below the current price.
However, the catalyst could be President Powell's speech in Jackson Hole. In the American session, the currency market is likely to trade under strong volatility depending on the details that are known. Some analysts believe that there will be no change in Powell's rhetoric. If this happens, the Japanese Yen will strengthen and could fall to the key support at 109.45.
On the contrary, if the content if his speech favors the US dollar, USD/JPY could spike and break the barrier of 110.15 with targets at 110.54. This level is minor resistance. The pair is likely to reach the key resistance zone of 4/8 of murray at 110.93.
Our outlook will remain bullish for USD / JPY as long as the pair continues to trade above the 200 EMA and above the uptrend channel. Our targets are at 110.54 and 110.93. A drop towards 109.45 will also be an opportunity to buy.
Support and Resistance Levels for August 27 - 30, 2021
Resistance (3) 110.53
Resistance (2) 110.37
Resistance (1) 110.22
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Support (1) 109.76
Support (2) 109.61
Support (3) 109.17
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Trading tip for USD/JPY for August 27 - 30, 2021
Buy above EMA 200 at 109.90 with take profit at 110.54 (3/8) and 110.93 (4/8), stop loss below 109.60.
Buy if the pair rebounds to 109.45 with take profit at 110.54 (3/8) and 110.93 (4/8), stop loss below 109.15.
