Current trend

The US dollar shows strong growth against the Japanese yen in Asian trading, quickly retreating from local lows, updated at the end of the last trading week. On Friday, the US currency updated its lows from December 20, 2021, dropping just below 113.50. Nevertheless, the instrument failed to consolidate at new levels, and already on the same day the US dollar won back most of its losses.


It is also worth noting that on Friday a large block of macroeconomic statistics was released in the US, which turned out to be quite weak, but did not cause the expected negative reaction on the market. Anyway, along with a significant drop in Retail Sales, the data also reflected a decline in Industrial Production in December by 0.1%, while analysts had expected it to grow moderately by 0.4%. Michigan Consumer Sentiment Index in January fell from 70.6 to 68.8 points, which turned out to be worse than forecasts for a decline to 70 points.


Support and resistance

In the D1 chart, Bollinger Bands are reversing horizontally. The price range is expanding from below, remaining spacious enough for the current activity level in the market. MACD is going down preserving a stable sell signal (located below the signal line). The indicator is about to test the zero level for a breakdown. Stochastic, on the contrary, indicates the growth of the instrument. The indicator reversed upwards near its lows, reflecting the strongly oversold dollar in the ultra-short term.

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