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USD/JPY: the pair remains at record highs

USD/JPY, currency, USD/JPY: the pair remains at record highs

At the beginning of the new week, the USD/JPY bulls retain the advantage, and the pair remains above the key level of 140.00, in the area of the 1998 highs.

Japan's July inflation report showed a record 2.4%. Nevertheless Bank of Japan does not plan to change course of monetary policy towards tightening, keeping a negative rate (-0.1%) and abandon its economic stimulus programs.

At the same time, the Non-farm Payrolls released on Friday showed the stability of the US labor market that will allow the Fed to continue its aggressive tightening of the monetary policy. During the month the United States economy has added 315 thousand jobs against a forecast of 300 thousand. On the downside, analysts noted an unexpected rise in unemployment from 3.5% to 3.7%.

Today USD/JPY was supported by Japan's manufacturing activity index, which showed a decline from 49.5 p to 49.2 p.

Technical analysis of the USD/JPY

The Bollinger indicator remains steadily directed upward.

MACD indicator is strengthening in the positive range and retains a buy signal.

Stochastic Oscillator is in the area of maximum values.

USD/JPY Daily Chart Forex

After a confident breakdown of resistance at 140.78, we return to long position formation with Take Profit at 142.50. Stop loss is set at 139.90.

In case buyers fail to break through resistance at 140.78, we'll wait for the support level at 139.67, after that we will open a sale with the target point at 137.50 and stop at 140.78.

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Symbols USD/JPY

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