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USD/JPY ranges around the 108.840 support level, Jackson Hole symposium in focus

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Thursday, August 24, 2017 3:00PM / MeriFX 

Source: MERI FX

Fundamental Indication

USD: The Dollar rebounded this morning as the central bankers’ symposium which is scheduled to hold in Jackson Hole, Wyoming draws near. The meeting is expected to provide forward guidance on the Federal Reserve interest rate decision for the remaining part of the year. However, negative sentiment still surrounds the North Korea and US stand-off, as well as the threat, by President Trump, to shut down the government in the event that the fund for the US-Mexico border wall is denied. 

JPY: Due to its safe haven characteristics, the Japanese Yen appreciated in value as the US political tension persisted. The discussion by the Fed chair, Yellen, in the symposium is likely to influence the movement of the currency pair.

Technical Analysis
The pair has recorded a 4.41% decline since July 11, 2017 as negative sentiments persist. Two scenarios may however be considered as the USD/JPY has approached the 108.840 support level with the price displaying short term positive sentiment.  

Scenario 1:
·         A “Buy” may be considered, if the pair closes positive at the 108.840 support level

·         Stop loss at the low of the bullish candlestick

·         First target price 110.811

·         Second target price 111.898

Scenario 2:
·         A “SELL” may be considered, if the price breaks below the 108.840-108.182 support level, pulls back to the support level and confirms a bearish reversal.

·         Stop loss at the high of the bearish candlestick

·         Target price at 105.387

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