FXStreet (Bali) - One of the seasonal patterns to keep an eye on for the month of August is the appreciation of the Japanese Yen, which has a tendency to outperform most of its rivals according to data collected since 1975 until 2008.
During the month of July, one notorious pattern seen over the years was the weakening of the Loonie. As seen in the charts, one of the main themes was indeed the battering of the Canadian currency, suggesting that such seasonals, in a way, are interpreted as important inputs that traders all over the world tend to pay close attention to.
Back to the Yen, by looking at the current technical stance, the USD/JPY skyrocketed towards 103.00 post FOMC, undoubtedly reinforcing the bullish case going forward. However, in the big scheme of things, the context the pair trades at still fits the profile of a range-bound market, with supply levels at 135.07-35 and 103.88-104.14 to potentially still prove hard to overcome. On the downside, a major demand imbalance (void) has been created, suggesting that any Yen appreciation has now plenty of space fir runners.