USDJPY Consolidates Above 108 Ahead of ECB Decision

USDJPY consolidates above the 108 mark for third day as traders looking for a 25 basis point interest rate cut by Fed next week. Japan Corporate Service Price (YoY) came in at 0.7% above expectations (0%) in June while the Japan Foreign Investment in Japan Stocks dipped from previous ¥-93.1B to ¥-110B in July. Yesterday, Japan June final machine tool orders came in at -37.9% topping expectation of -38.0% year over year prelim.

USDJPY consolidates 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 107.96 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 108.23 the daily high and then at 108.42 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.Don’t miss a beat! Follow us on Twitter.