|Day's range||112.4 - 112.731|
|52-week range||104.6670 - 114.7250|
The US dollar has bounced recently from the 61.8% Fibonacci retracement level, and we are now hovering just above the ¥112 level. At this point, it looks as if we could rally from here but we also get the FOMC Meeting Minutes late on Wednesday that could influence where we go next.
The British pound pulled back during the trading session on Wednesday, reentering the gap that had formed at the beginning of the week. It does look as if the buyers are trying to come back though, and I think that the ¥146.50 level should of course be interesting as well.
It’s all eyes on the Pound, with Brexit news and UK retail sales figures to provide direction through the day. Any progress on Brexit to be the key driver.
The market could witness significant buying interest around the 1.31 and 1.30 level, all which are strong support points. The 0.71 and 0.70 levels underneath are the strong support points and the market is likely to hold on the levels. The pair retraced from the 61.8% of the Fibonacci level at 111.50 level, an area which has been important in the past.
Demand for risk, economic reports and the Fed minutes should dictate the direction of the USD/JPY on Wednesday.
The US dollar rallied during the day on Tuesday, reaching towards the recent consolidation area. The pair of course is very sensitive to stock markets overall and the risk appetite in general, so I think that we should pay attention to the S&P 500 as a result.
The British pound took off to the upside during the Tuesday session against the Japanese yen as more of a “risk on” flavor came back into the marketplace. However, as the Americans have stepped on board, it looks as if we may be a little overstretched as we are running into some recent selling pressure around the ¥148 level.
Adding to the dollar’s weakness was the consolidation of Treasury yields. After yields surged to multi-year highs last week, the rise in yields has subsided, reducing demand for the dollar. Gold improved on Tuesday, but the market posted an inside move, which typically indicates investor indecision and impending volatility. Traders said the gains were related to short-covering. New longs appeared to be scarce since the rally in the equity markets forced them to re-evaluate their reasons for being long. U.S. West Texas Intermediate and international-benchmark Brent crude oil futures settled higher on Tuesday after the American Petroleum Institute reported a surprise crude oil draw.
Even after recovering from 1.1430-25 support-zone, the EURUSD has to surpass 100-day SMA level of 1.1630 in order to justify its strength in targeting the seven-month long descending resistance-line, around 1.1730. Should prices rally beyond 1.1730 on a daily closing basis, the 1.1810 & 1.1850 are likely intermediate halts that can be availed prior to aiming the 1.1920 level, comprising 200-day SMA. In case the pair witness downside pressure, the 1.1520, the 1.1500 and the 1.1430 may entertain short-term sellers before again highlighting the importance of 1.1430-25 area. ...
The USD/JPY has formed a possible bearish continuation pattern if it closes below the W L3 support at 111.63. However, a correction is still possible.
Last week, DAX broke the long-term neckline of the major head and shoulders pattern. This week starts with a pull-back, which is nothing surprising as this is a typical price action movement. Any bearish price action there will give us a legitimate signal to go short.
The initially gapped lower during the Monday’s session in a bit of risk-off move, but then started to rally higher as American came on board. The 1.16 level is continuing to offer a bit of resistance to the pair and if it breaks higher then it next major stop for the market will be at 1.17 level. The market is still in the consolidation phase and 1.15 level underneath will be the strong support point for the pair. Buying on dips will be the right strategy for this market. …Read MoreGBP/USD
Based on the current price at 111.990, the direction of the USD/JPY the rest of the session is likely to be determined by trader reaction to the short-term Fibonacci level at 111.984.
The US dollar broke down below the ¥112 level during the early hours of Monday but has found a little bit of support near the ¥111.50 level, an area of previous resistance. At this point, it looks as if we are trying to form some type of bottoming pattern, but I think you should be very cautious if you are looking to go long.
The British pound gapped lower to kick off the week, breaking below the ¥147 level. However, we have started to recover so at this point we are deciding whether we are going to return to the consolidation area that we had been in, or are we going to break down?
A Commerce Department report on Monday showed that U.S. retail sales barely rose in September as a rebound in motor vehicle purchases was offset by the biggest drop in spending at restaurants and bars in nearly two years.
The 1.15 level is a strong psychological support underneath and will attract a lot of value traders to send this market higher towards the 1.16 level. The Italian debt crisis is still affecting to Euro to break lower which is expected to take time to settle down and 1.1450 level underneath is acting a floor of this market.
Analysts looking for key drivers over the near-term that will ultimately decide the fate of a number of currencies, economies and ultimately whether a new crisis dawns.
The US dollar fell during the week against the Japanese yen after forming a perfect shooting star last week at resistance. This was a classic sell signal, and the astute traders out there benefited. However, as we close out the week, it looks likely that there is support just below.
The British pound dropped during the week against the Japanese yen, but as you can see the ¥147 level has offered support as we approached it. This is a market that has been going back and forth, but I would draw your attention to the shooting star from three weeks before.
The US dollar initially tried to rally during the trading session on Friday, but found resistance at the top of the recent consolidation that we have been in. Overall, this is a market that looks as if it is trying to find support at the 61.8% Fibonacci level again.
The British pound has gone both up and down against the Japanese yen during the trading session on Friday, as traders start to come into the weekend. Because of this, it makes sense that the market participants would continue more of the same.
The Euro rallied during the Thursday’s session on the back of weak US CPI data reaching towards the 1.16 level, which is offering a bit of resistance. The 112 level underneath looks supportive and a slight bounce can send the pair towards the 113 level and above where there is a significant amount of supply in the market.
The US dollar continues to show weakness against the Japanese yen and a miss for the CPI figures out of America didn’t help the situation either. It looks as if the ¥112 level underneath should offer support though, so I think it is only a matter of time before we see a bit of a bounce. The recent selloff has been exacerbated by the bloodletting on Wall Street during Tuesday.
The British pound rallied during the US session on Thursday, reaching towards the ¥149 level before pulling back a bit. It looks as if we have a larger consolidation area that continues to keep this market intact. I think that there are a lot of risk appetite issues out there, and that of course will affect this pair drastically.