Technical Chart pick of the day: USDJPY – Bearish
The Japanese yen edged up as Japan’s government will submit to parliament early next week a second extra budget to fund a new $1.1 trillion stimulus package to cushion the economic blow from the coronavirus pandemic. Japan’s factory activity shrank at the fastest pace since March 2009 in May, a private sector survey showed on Monday, as manufacturers widely struggled with the demand blow from the coronavirus pandemic.
Meanwhile protests continue in the US expanding in Boston, New York and Washington D.C. as the US dollar sinks to a 11-week low against a basket of currencies.
· On a technical perspective, the trend is bearish, with prices below the 20, 40, 100 and 200 EMAs.
· A bearish crossover formed, with the 20 EMA crossing the 100 EMA. This indicates that selling pressure is present.
· Based on the pivot point analysis, prices are below the pivot levels. This signifies bearishness.
Resistance: R1: 108.083, R2: 108.393, R3: 109.206
Support: S1: 107.270, S2: 106.767, S3: 105.954
