Monday Summary
The USD/JPY ended the session 0.58% higher at 146.214. The USD/JPY had a mixed start to the day, falling to an early low of 145.145 before rising to a high of 146.401. Significantly, the USD/JPY recovered from a two-day loss and continued its rising trend that began on August 7.

With the housing industry serving as a barometer for the US economy, significant monthly reductions could be an early warning of a deteriorating macroeconomic environment due to tighter bank loan controls. A significant deterioration in housing sector circumstances may lead the Fed to pause the monetary policy tightening cycle and consider an early rate decrease.

However, because housing sector estimates are variable, it is vital to analyse patterns rather than individual month-to-month figures. When considering the existing home sales data, house prices, inventory, and mortgage rates must also be considered.

Aside from the figures, investors should keep an eye on FOMC member remarks ahead of the Jackson Hole Symposium. Tom Barkin, a FOMC member, is scheduled to speak today. However, because Tom Barkin is an alternative member of the Committee, the impact of forward guidance on the USD/JPY pair should be limited.

Daily USD/JPY Price Action Chart;
The USD/JPY was trading below the 147.00 – 147.50 barrier zone on the Daily Chart. Following the strong Monday session, the USD/JPY maintained above the 50-day and 200-day EMAs, indicating bullish short-term and long-term price indications.

The 14-day RSI of 65.81 indicates bullish sentiment, implying a move through the 146.50 – 147.50 resistance zone. USD/JPY collapse through the upper level of the 145.0 – 144.0 support zone, on the other hand, would bring sub-144.0 into play.

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