HomeContributorsTechnical AnalysisMarket Morning Briefing: Dollar-Yen Again Rose Above 114.00

Market Morning Briefing: Dollar-Yen Again Rose Above 114.00

FOREX

Dollar Index (94.83) has come off a bit from a high near 95.15 yesterday. We can still look for further rise towards 95.50 (medium term) and even 97.00 (long term) while the Supports at 94.50 and 94.00 remain intact.

Similarly, the Euro (1.1595) saw some short-covering from 1.1553, just above our target region of 1.1550-30. Resistance at 1.1620 is still valid. Need to see if it can push the Euro down to lower levels.

Dollar-Yen (113.78) again rose above 114.00 yesterday to a high of 114.34, but has come off again from there. It is running into sustained selling every time it rises past 114.00. This is because the US-Japan 10Yr Spread (2.28%) has been coming down and has broken a near-term rising trendline.

Dollar-Yuan (6.6393) has risen afresh and Dollar-Rupee has opened higher near 65.15. If the rise sustains, we may have to look for 65.40 as well.

INTEREST RATES

The German-US 10Yr Spread (-1.98%) has been rising from -2.05% since 30th Oct, but has Resistance near -1.95% and may be seen as bearish while below -1.95%.

Next week’s US CPI release on 15th Nov will be important to see how much it reflects the recent increase in Crude, as that will influence the US Yields.

The US 10Yr (2.31%) has Support at 2.24%, but maybe there can be a near-term dip to test that Support, before a bounce takes place later in Nov. We also need to see if the US 5Yr (1.98%) will dip towards 1.80% or not. But, the US 30Yr (2.77%) may have a Support near current levels. Let us see if it bounces or not.

The Japanese 5Yr (-0.14%) has come down to test Support and should be a candidate for a bounce. The Japanese 10Yr (0.03%) too might have Support near 0.01%.

Kshitij Consultancy Service
Kshitij Consultancy Servicehttp://www.kshitij.com
These views/ forecasts/ suggestions, though proferred with the best of intentions, are based on our reading of the market at the time of writing. They are subject to change without notice.Though the information sources are believed to be reliable, the information is not guaranteed for accuracy. Those acting in the market on the basis of these are themselves responsibly for any profits or losses that might occur, without recourse to us. World financial markets, and especially the Foreign Exchange markets, are inherently risky and it is assumed that those who trade these markets are fully aware of the risk of real loss involved.

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