Prime Minister Shinzo Abe announced new stimulus package as part of Japanese government effort to boost the economy. The package, including fiscal policy worth 13.5 trillion yen, will continue until next year.

Total number for the package is 28.1 trillion yen, including private public partnership, possibly will not directly boost the growth.

Technical Analysis:

USD/JPY currently is under pressure, testing intraday key support at 101.445. Price remains below 20 MA and 50 MA on hourly chart, but note that stochastic and CCI are oversold.

If the price managed to break below 101.445, USD/JPY possibly will keep under pressure with 101.120 as target and 100.756 in extension. As alternative strategy, watch for bearish signal confirmation on a pull-back move to within the Fibonacci resistance area at 101.971-102.296 with target at 101.770-101.445. Be careful if the price managed to break above 102.296 because it will turn the intraday bias bullish. In that case, USD/JPY possibly will move up to 102.497-102.882.

Trading Plan:
– Sell on break of 101.445; S/[email protected], T/[email protected] or 100.756
– Sell on bearish signal confirmation on a pull-back move to within 101.971-102.296; S/[email protected], T/[email protected] or 101.445

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One thought on “USD/JPY: Remains Under Pressure, Look For Bearish Setups (August 2, 2016)”

  1. Maryna says:

    Hi Eko, thanks for the post. I’m selling it to 100.20 and a break below will take met to 96.70 where multiple lows were formed in 2013. I will trade it with a drink in hand as I don’t generally trade USD, but I’m sure my drink will help me get to the target!

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