The US dollar is declining against the Japanese yen at trading in Asia, updating local lows since July 19.
Moderate pressure on the position of the US currency is exerted by not the most confident macroeconomic statistics from the United States, which only emphasizes the correctness of the current course of the regulator to maintain the existing incentives. The epidemiological situation in the country remains alarming, despite the availability of vaccines. So, last weekend, 122 thousand new cases of infection were recorded in the United States, which is the maximum value since February 2021.
Also on Sunday, a bill that actually canceled the national debt ceiling ceased to operate in the country. The limit, which was set back in August 2019, is $ 22 trillion, but the current level of public debt has long exceeded this mark and reached $ 28.5 trillion. Now the parliamentarians will again have to come to some decision: either raise the level of the national debt, or cancel it again for some time to avoid default in October.
Support and resistance levels
The Bollinger bands on the daily chart show a reversal in the horizontal plane within the forex forecast. The price range is expanding, but it does not have time to follow the "bearish" activity in recent days. The MACD indicator is declining, maintaining a relatively strong sell signal (the histogram is located below the signal line). Stochastic, approaching its minimum levels, turned into a horizontal plane, signaling in favor of a corrective growth of the dollar in the ultra-short term.
Resistance levels: 109.29, 109.57, 110.00, 110.38.
Support levels: 109.00, 108.54, 108.20, 107.78.
Thus, USD/JPY Dollar Yen forecast for August 4-5, 2021 for opening short positions, you can focus on a confident breakdown of the 109.00 level down. Take profit — 108.20. Stop loss — 109.40. Implementation period: 1-2 days.
A rebound from the level of 109.00 as support, followed by a breakdown of the level of 109.29 up, can be a signal for new purchases with the goal of 110.00. Stop loss — 109.00.