|Day's range||109.03 - 109.889|
|52-week range||104.6670 - 114.5110|
Based on Friday’s close at 109.706, the direction of the USD/JPY on Monday is likely to be determined by trader reaction to the 50% level at 109.445.
Late Friday, President Donald Trump said he will make a “major” announcement on Saturday about the border and ongoing government shutdown. China offers to increase its annual import of U.S. goods by a combined value of over $1 trillion.
Bloomberg news is saying that Chinese officials made the offer during the mid-level trade talks earlier in the month. Furthermore, China offered to increase its annual import of U.S. goods by a combined value of over $1 trillion, the officials told Bloomberg, which was the first to report on the import boost offer.
The US dollar rallied a bit during the week, breaking above the top of the previous week which of course is a very bullish sign. However, I think there is plenty of resistance just above just waiting to get involved, showing signs of exhaustion will attract a lot of attention.
The British pound rallied significantly during the week after the vote on the Brexit, and hopes appearing that perhaps the Brexit will be delayed. This is short-term positive for the British pound, so obviously it carried over in this market as well.
The British pound initially tried to rally again during the day on Friday, but then rolled over as we have gotten a bit ahead of ourselves. That being said, I think there is support underneath as well so the question is whether or not it is going to be and exhaustion play, or is it just simply pulling back to find more momentum underneath.
The Euro continued with its back and forth momentum in the Thursday’s session as the 1.14 level has been important in the short term charts and also attracting a lot of interest. Going forward, the market will continue to grind higher, as it is trying to form a bit of rounded-bottom pattern but the 1.15 level above is likely to offer significant resistance and of course the 200 Day EMA level above. …Read MoreGBP/USD
Geo-political risk will remain the key driver ahead of the weekend, with Brexit and the possibility of a reduction in tariffs on Chinese goods on the table.
The US dollar has pulled back during early trading on Thursday, as the ¥109 level has offered significant resistance. By pulling back the way it has, the market looks very likely to continue to chop between the 100 a young level underneath and the ¥109 level above.
The British pound has fallen against the Japanese yen only to find support again at the 140 young level. We are heading to a major crossroads, and I think the next couple of days could be rather volatile.
USDJPY’s pullback from 109.10-20 is less likely to signal the pair’s weakness unless a sustained drop beneath three-week-old upward slanting trend-line, at 108.40 now, takes place on the four-hour chart. If the pair slip under the 108.40, the 107.70, the 107.00 and the 106.70 support-levels may gain sellers’ attention. Meanwhile, clear break of 109.20 enables the pair to aim for the 109.50 and the 110.00 resistances. In case prices manage to extend its up-moves past-110.00, the 110.25-30 seems crucial to watch as it holds the gate for the pair’s rally to 110. ...
With Theresa May and the Tories surviving the day, focus will shift to the EU and whether the British PM can find better terms.
The US dollar continues to grind against the Japanese yen, falling initially during the trading session on Wednesday, but bouncing a bit later in the day. At this point though, we are still very much in the consolidation phase.
The British pound continues to grind back and forth against the Japanese yen, and after the House of Commons voted against the Brexit plan that Teresa May had come up with. People are starting to suggest that perhaps it will be a softer Brexit than originally thought, but quite frankly I think this pair is still vulnerable.
Continue to watch the price action in the U.S. equity markets for direction today. A risk-on session will be bullish for the USD/JPY, risk-off will be bearish.
The Euro was a bit negative during the Tuesday’s session, breaking below the 1.1450 level to reach the supportive 1.14 level. The 200 Day EMA is offering a significant resistance and until it breaks above that, the pair will continue to witness selling pressure on each and every rally. There are a lot of developments going around especially with the Fed on future rate hikes, ECB’s decision to step away from asset purchase and Brexit which will keep the market extremely noisy. …Read MoreGBP/USD
With the Brexit deal sunk and Theresa May needing to head back to Brussels, there’s just a vote of no confidence to survive later today…
The US dollar initially tried to rally during the trading session on Tuesday but gave back quite a bit of the gains in early trading. This shows a general malaise when it comes to risk appetite, as there are a multitude of concerns out there to continue to weigh upon this currency pair.
The British pound try to break above the psychologically and structurally important ¥140 level but has found enough resistance to turn around of form a nasty looking candle ahead of the UK parliamentary vote.
The Dollar/Yen is edging higher after wiping out yesterday’s losses on the back of upbeat comments from China. The news triggered a turnaround in U.S. equity markets which led to increased appetite for risk and the shedding of the safe-haven Japanese Yen. All eyes are likely to remain on the U.S. equity markets today for guidance.
The Euro continued to trade sideways in the Monday’s session, hovering around the 1.1450 level as the 1.15 level above has turned massively resistive. Also, the 200 Day EMA is sliding downwards, which is putting further pressure on the market. The market will continue to remain choppy as the market seems to have lost direction. The 1.14 level underneath should offer support and it extends down to the 1.13 level. …Read MoreGBP/USD
It’s “risk on” in the early hours, with the main event of the day being Brexit. Has Theresa May done enough and will it sink the Pound?
The US dollar has fallen against the Japanese yen during the trading session on Monday as traders came back to work. Ultimately, it looks as if the ¥108 level will offer support though, so I think that there is a lot of interest in this area.