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The US Dollar (USD) fell against the Japanese Yen (JPY) on Monday, dragging the price of USDJPY to less than even 124.40 ahead of some key economic events. The technical bias remains bullish due to a Higher High and Higher low in the recent wave on daily chart.
Technical Analysis
As of this writing, the pair is being traded around 124.39. A hurdle may be noted near 124.59, the 76.4% fib level ahead of 125.00, the psychological number and then 124.89, the swing high of the last major upside rally as demonstrated in the following daily chart.
On the downside, the pair is expected to find a support around 124.00, the psychological number ahead of 123.79, the 61.8% fib level and then 123.14, the 50% fib level. The technical bias will remain bullish as long as the 123.00 support area is intact.
US Housing Market Index
Today the National Association of House Builders (NAHB) is going to release the US Housing Market Index news for the month of August. The figure is expected during the early New York session. According to the average forecast of different economists, the housing market index remained 61 points in August as compared to 60 points in the month before. Generally speaking, higher index reading is considered positive for the economy and vice versa thus a better than expected actual outcome will be seen as bullish for USDJPY.
Trade Idea
Considering the overall technical and fundamental outlook, selling the pair around current levels appears to be a good strategy in short to medium term. The trade should however be stopped out on a daily closing above the 125.27 resistance area.
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