Technical analysis 05.08.19

USDJPY

The pair is trading at the level of 106.00 due to the escalating US-China trade war as the Chinese authorities allowed the yuan to weaken. A decrease in investors’ risk appetite against this background may lead to further drop of the pair.

The price is below the middle Bollinger band, below EMA 5, but below SMA 14. RSI is in the oversold zone and continues to drop. Stoch are also in this zone and uninformative.

Trading recommendations: 

If the pair holds below the level of 106.00 as investors shy away from risks, it will lead to a further decline in the price to 105.00.