|Day's Range||132.13 - 133.13|
|52 Week Range||125.08 - 137.23|
Today, we will focus on the two pairs with the JPY an Oil. Let’s start with the EURJPY, where yesterday’s daily candle is a shooting star. It would be meaningless if not the fact that this candle is being present on an important horizontal resistance.
One wonders how the Eurozone will achieve higher core inflation if monetary policy slowly tightens and the economic activity slows. Should the Euro appreciate and get back above, say, the 1.20 mark against the greenback, it will be even harder for inflation to accelerate.
>> The EUR/JPY formed an ascending trend line along with the inverted SHS pattern. A close above the M H3 camarilla pivot suggests a further bullish pressure. <<
The EUR/JPY has formed a POC zone straight at D H3/DH4 but below the camarilla W H3 Pivot. Trend lines are suggesting a confluence with technical tools (EMAs, Pivots, Candlesticks) for further bearish movement if the price stays below 129.58.
The last week was very eventful for the USDJPY. Apart from the technical analysis, positive sentiment was strengthened here by the rise of the global exchanges. In the last week, USDJPY broke three important resistances.
Investing.com - After weakening to 13-month lows the euro clawed back above the $1.14 level on Monday, as Turkey’s lira pulled away from record lows against the dollar, but still held heavy losses for the day.
Investing.com - The euro was trading at more than one-year lows on Monday as a crash in the Turkish lira roiled global markets amid fears that the country’s financial crisis could spread to European markets.
Investing.com - The pound fell to the lowest levels of the year on Wednesday as the currency was pressured lower by growing fears over the prospect of Britain exiting the European Union without a trade deal in place.
Having reversed from 112.15-20 horizontal-resistance, the USDJPY now rests on 50-day SMA level of 110.80, which if broken on a daily closing basis could further fetch the quote downwards to 110.55 and 110.25-20 support-zone. In case the pair refrains to respect the 110.20 mark, its plunge to 100-day SMA level of 109.55 and a consecutive south-run to 109.00 can be expected. Should prices take a U-turn from 50-day SMA, the 111.40 may offer immediate resistance to the pair before highlighting the 112.15-20 area again. However, a D1 close beyond 112.20 might not hesitate challenging the 112. ...
Investing.com - The dollar edged lower against a currency basket on Wednesday, sliding for a second day as trade tensions faded, while sterling wallowed near one-year lows, pressured lower by Brexit uncertainty.
The consequences of the trade conflict between the US and China threaten to affect the growth of the entire region, which puts pressure on the yen as well. Global stocks trade slightly lower on Monday morning.
The Japanese yen was one of the worst performers among the U.S. dollar’s main rivals, trading lower after the Bank of Japan surprised markets by keeping its monetary policy ultra loose.
The U.S. dollar is poised to strengthen against the Japanese yen heading to the end of 2018, forecasts Jane Foley, senior FX strategist at Rabobank.
According to different estimates, there is a risk now for Japan to get involved in the trade wars between the US and China. As of yet, there are no compelling reasons to be afraid of it, but in theory, such possibility really exists.
The euro sells off on Thursday, making it one of the worst performing G-10 currencies on the day, as traders digest the European Central Bank’s latest policy update.
Investing.com - The dollar steadied against a currency basket on Monday following steep declines after U.S. President Donald Trump expressed discomfort with the greenback's strength, while the yen pared back early gains.
Last week was very volatile, especially for the USDJPY. Today, USDJPY reached a combination of two important supports. Price Action says that the broken resistance should be tested as a support and that is exactly what is happening now.
Trump’s comments may have ignited the initial sell-off in the Dollar/Yen, however, they are now an afterthought due to the reports that the BOJ is considering a shift in monetary policy. The story is still breaking and details are sparse, but investors are wasting no time waiting for official word which probably won’t come out until next week’s central bank meeting.
The European Union and Japan signed a historic deal on Tuesday that will remove any tariffs on products they exchange.
The U.S. dollar gains momentum versus most of its rivals on Tuesday, as Federal Reserve Chairman Jerome Powell had favorable things to say about the U.S. economy even in light of the continuing trade spats surrounding the Trump administration.
the ECB will be releasing its monetary policy meeting minutes. The minutes cover the June ECB meeting where policymakers announced a taper to the QE program and an exit from QE by December 2018.
Overall, it was a “cheerleading” speech with Draghi emphasizing the accomplishments of the ECB and the importance of the European Union unifying against the threat of increased protectionism in order to promote economic prosperity.
The USDJPY is coiling for a significant break and the technical analysis points to higher levels. In this case, the vertical movement is the strong bullish reaction the pair had when President Trump got elected one and a half years ago. Typically, the USDJPY is correlated directly to the United States equity.
The European Central Bank president, Mario Draghi was speaking at the banking conference event in Portugal last week. The main take away from the speech was that the ECB president promised that the ECB would take time to hike interest rates.