FOMC Minutes: Avoiding the “T” Word
The minutes of the Federal Reserve’s April 27-28 policy meeting are due on Wednesday (18:00 GMT) but investors are not holding their breath for any taper signals. The Fed has not moved an inch with its policy stance this year even as the consumer price index has skyrocketed to...
USD/JPY Breaks Pattern
On Tuesday morning, the USD/JPY currency exchange rate plummeted, as the rate passed the support of the 109.00 level. Moreover, the pair broke the channel down pattern, which guided the pair down since May 13.
In regards to the future, the rate had no technical support. Namely, the USD/JPY could...
The Analytical Overview Of The Main Currency Pairs
The EUR/USD currency pair
Technical indicators of the currency pair:
Prev Open: 1.2143
Prev Close: 1.2151
% chg. over the last day: +0.07%
On Monday, the EUR/USD currency pair continued to rise. Yesterday, the US Treasury bond auction was held by the Treasury Department. Increased liquidity in the financial system is playing in favor...
US Dollar Dips As Inflation Concerns Ease
The US dollar beats a modest retreat
The pace of the US dollar reversal after last week’s mid-week inflation scare slowed overnight, with the greenback finishing modestly lower. The dollar index fell 0.12% to 90.20 and has eased another 0.10% to 90.10 this morning, as Asian markets race to discount...
GBP/JPY Breaks Significant Resistance Line
The Pound Sterling surged by 84 pips or 0.55% against the Japanese Yen on Monday. The currency pair breached a significant resistance level at 154.30 during Monday's trading session.
Given that the GBP/JPY exchange rate has breached the resistance level, as mentioned above, bullish traders are likely to target the...
EUR/JPY Supported By 50- Hour SMA
The common European currency declined by 41 pips or 0.31% against the Japanese Yen on Monday. The decline was stopped by the 50– hour simple moving average during yesterday's trading session.
Technical indicators suggest buying signals on the 4H, daily and weekly time-frame charts. Most likely, the exchange rate could...
Daily Tecnical Analysis
EUR/USD
Current level - 1.2156
An appreciation of the euro against the U.S. dollar towards 1.2270 can be expected if the resistance at 1.2172 is breached. However, at the time of writing this analysis, the volatility remains low. Due to this, it is possible for the currency pair to enter a...
EURJPY Trades Bullish Along Resistance Line
EURJPY extended its upward trajectory towards a new 32-month high of 132.94 on Monday but the bullish action was mostly anemic during the day as the strong resistance line kept upside pressures under control once again.
Downside corrections would not be surprising in the short-term as the price has been...
European Open: Japan’s GDP Contracts For The First Quarter In Three
Whist there had been a growing expectation that Japan's economy would shrink in Q1, the number came in much worse than expected.
Asian Indices:
Australia's ASX 200 index rose by 41.7 points (0.59%) and currently trades at 7,065.30
Japan's Nikkei 225 index has risen by 628.23 points (2.26%) and currently...
EURJPY 133.75 Possible
The euro is still looking bullish against the Japanese yen in the short and medium-term, as the pair trades at its highest level since September 2018. Lower time frame analysis continues to shows that an inverted head and shoulders pattern is in play and has yet to reach its...
Sterling Jumps on Reopening Optimism and Job Data, Risk Appetite Returning
Dollar and Yen are both under pressure again today, as broad based risk sentiments improved. In particular, the volatile Nikkei managed to close up more than 2%. New Zealand Dollar is leading other commodity currencies higher too. But Canadian Dollar and Sterling are the strongest ones for the week...
USD/JPY Retraces For Support
The Japanese yen stayed muted as the country's GDP contracted slightly more than expected in Q1.
The surge above 109.70 is an indication that buyers have regained control after a two-week-long consolidation. The US dollar is pulling back after the RSI overshot to 80.
Buying interests are likely to be found...
Japan GDP contracted -1.3% qoq in Q1, CHF/JPY in healthy up trend
Japan GDP contracted -1.3% qoq in Q1, slightly worse than expectation of -1.2% qoq. In annualized term, GDP contacted -5.1%, versus expectation of -4.6%. Looking at some details, capital expenditure dropped -1.4% qoq versus expectation of 1.1% qoq. External demand dropped -0.2% qoq, matched expectations. Private consumption dropped -1.4%...
AUD/JPY recovers after RBA minutes, still bounded in consolidations
Minutes of RBA's May 4 meeting reiterated that rate hike was unlikely "until 2024 at the earliest". Members would "consider whether to retain the April 2024 bond as the target bond for the 3-year yield target or to shift to the next maturity" in July.
Concerning QE, the members suggested...
Market Morning Briefing: Pound Is Heading Towards 1.42
STOCKS
Dow remains stable above 34000 and can remain in the 33500-35000 range for some time. DAX keeps alive the chances of seeing 15700-15800 on the upside before reversing lower. Nikkei is trading near a crucial resistance level of 28500 which will have to be broken to move further higher...
The Analytical Overview Of The Main Currency Pairs
The EUR/USD currency pair
Technical indicators of the currency pair:
Prev Open: 1.2079
Prev Close: 1.2141
% chg. over the last day: +0.51%
On Friday, the EUR/USD currency pair grew by 0.51%. Eventually, buyers managed to keep the support level of 1.2074, which is the level of priority change on the H1 timeframe.
Trading recommendations
Support...
Forex and Cryptocurrency Forecast
First, a review of last week's events:
EUR/USD. As predicted by most experts (60%), the first half of the week benefited the dollar, strengthening it and dropping the EUR/USD pair to support 1.2050. The US inflation report, released on Wednesday May 12, pointed to an impressive rise in April and...
GBPJPY Watching Divergence
The British pound is consolidating towards the top of its range against the Japanese yen currency, ahead of the release of key jobs and inflation data from the UK economy this week. The one-hour time frame shows that the MACD indicator is showing that bearish price divergence has formed...
GBP/JPY Consolidates Below 154.50
Since last week's trading sessions, the British Pound versus the Japanese Yen has been trading between the 153.50/153 levels. The currency pair tested the 154.30 area on Monday morning.
Everything being equal, the GBP/JPY currency exchange rate could continue to trade within the 153.50/153 range, as mentioned above, within the...
EUR/JPY Bulls Likely To Prevail
The Eurozone single currency surged by 58 pips or 0.44% against the Japanese Yen on Friday. The currency pair breached the resistance level at 132.04 during the Asian session on Monday.
All things being equal, the 50– hour simple moving average could provide support for bullish traders to drive the...
USDJPY Meets 200-Period SMA, 109.00 Still Holds
USDJPY is retreating after it topped at the 109.78 resistance level. The price is finding support at the 200-period simple moving average (SMA). The RSI seems to be in a declining mode, however, the stochastic oscillator is posting a bullish crossover within the %K and %D lines in the...
GBP/JPY Higher Lows In Progress As The Price Is Slightly Bullish
The GBP/JPY has formed a bullish pattern configuration and we might expect a breakout above the previous high.
The POC zone 153.60-70 might spike the price up as it is a POC zone. We can also post a trend line which is adding to the confluence. If we see a...
Daily Tecnical Analysis
EUR/USD
Current level - 1.2136
The euro rose against the dollar during Friday's trading session, but today's session began with a minor sell-off. However, the upward movement is expected to continue after the pair tested, but ultimately failed to breach the support at 1.2129. The first important resistance is the level...
AUD/JPY Bounces From Support
The risk-sensitive Australian dollar rebounds as risk appetite returns. The pair has bounced off the 20-day moving average on the daily chart which coincides with the short-term support at 84.25.
General sentiment remains upbeat as the Aussie carries on the fourteen- month-long rally. Strong momentum above 84.85 points to 85.80...
Market Morning Briefing: Aussie Has Bounced Well From 0.77
STOCKS
Dow has risen well above 34000 and can remain in a range of 33500-35000 within its broader uptrend. DAX has gained momentum and can rise to 15700-15800 before reversing lower. Nikkei has failed to sustain the break above 28000 and is bearish to fall further in the coming days....
CFTC Commitments of Traders – Bets on Higher CAD Increased Markedly
As suggested in the CFTC Commitments of Traders report in the week ended May 11, NET LENGTH of USD index futures added +368 contracts to 2 423. Speculative long positions gained +5 095 contracts while shorts were up +4 727 contracts. Concerning European currencies, NET LENGTH in EUR futures...
Week Ahead – Inflation Scare Shakes Markets, European PMIs Next
It was a wild week in financial markets. Stocks got smoked while the dollar clawed back some ground as inflation finally showed its teeth, reigniting worries about higher interest rates being on the horizon. The upcoming week seems calmer. There are no central bank meetings and the minutes of...
The Analytical Overview Of The Main Currency Pairs
The EUR/USD currency pair
Technical indicators of the currency pair:
Prev Open: 1.2069
Prev Close: 1.2078
% chg. over the last day: +0.07%
On Thursday, the EUR/USD currency pair was trading in the range. Sellers tried to break through the support level of 1.2074 but failed to hold below it.
Trading recommendations
Support levels: 1.2074, 1.2026,...
GBPJPY Sellers Unable To Effectively Contest Ascent
GBPJPY is edging across the 153.39 level, which happens to be the previous high. The price is obeying this border as negative pressures lack the backing to gain an advantage. That said the advancing simple moving averages (SMAs) are endorsing the positive picture, while the Ichimoku lines are demonstrating...
USDJPY Final Shoulder
The US dollar has pulled back from the 109.80 level against the Japanese yen currency as the greenback starts to give back Wednesday’s strong gains. The four-hour time frame shows that the latest move higher could have completed the structure of a head and shoulders pattern, as the final...