|Day's Range||107.515 - 107.515|
|52 Week Range||104.8710 - 114.5110|
The US dollar continue to grind higher against the Japanese yen after initially gapping lower. Looking at this chart, it’s very obvious that the pair is approaching a major resistance barrier, and a major inflection point.
The British pound initially gapped lower after a reactive move to the Saudi drone attacks, as there were a lot of concerns about the global economy. Most of the week the market turned around to rally, but as we close out it looks like exhaustion is setting in.
The British pound initially tried to rally but fell against the Japanese yen. The ¥135 level has caused a significant amount of resistance, and with the technical confluence in this area, it’s likely that the market will run into a significant amount of trouble.
There were no major economic reports out of Japan overnight and there aren’t any from the United States on Friday. However, several Fed speakers are on tap and they could move the Forex pair especially since the Federal Reserve was unclear about future rate cuts.
The US dollar has pulled back a bit during early trading in Thursday as the 50% Fibonacci retracement level has offered a little bit of resistance against the Japanese yen. The market has been all over the place after the Fed cut, and of course the massive amount of potential geopolitical issues out there.
The British pound pulled back slightly during the trading session on Thursday, as the market had reached the crucial ¥135 level. With that in mind it makes sense that we will see a significant pullback from this area at the first hint of trouble.
With the central bank moves behind us, the focus will shift to the trade talks and their outcome will determine the next major decisions by the BOJ and the Fed, in my opinion.
Investing.com - The yen rose from a seven week low against the U.S. dollar on Thursday after the Bank of Japan kept monetary policy on hold, in the wake of the Federal Reserve’s overnight decision to cut rates.
It’s a big day for the Pound, with retail sales figures due out ahead of the BoE monetary policy decision. Will there be any dissenters to sink the Pound?
The British pound has continued to hover around the ¥135 level ahead of the FOMC Meeting, interest rate decision, and of course the statement. With that being said though, there is a lot of noise just above that I am paying attention to.
Look for enhanced volatility with the release of the Fed announcements. Firstly, there will be a reaction to the interest rate decision. Although a rate cut is expected, there are still enough traders on the sidelines to produce a wicked reaction.
With economic data on the lighter side, the market focus will be on Brexit chatter and the FOMC. For the Loonie, inflation figures will also influence.
The US dollar had rallied slightly during the trading session on Tuesday as we have reached relatively high levels against the Japanese yen. As we continue to bounce around just above the ¥108 level, it doesn’t take much imagination to think that perhaps traders are waiting for the Federal Reserve.
The British pound did very little during the trading session on Tuesday, as we continue to hang about where we gapped down to on Monday. With that in mind, it is somewhat impressive but at the end of the day we are overbought.
Investing.com - The Canadian dollar was weaker against the U.S. dollar on Tuesday after soft manufacturing data and falling oil prices erased gains from the prior session.
Although crude oil traders are likely to raise their risk premium, and risky asset investors will remain on their toes due to the simmering conditions in the Middle East, investors will begin to gradually shift their focus to the start of the two-day U.S. Federal Reserve monetary policy meeting which starts on Tuesday.
The US dollar gapped lower to kick off the trading session against the Japanese yen, as traders look for the safety of the yen after the drone attacks in Saudi Arabia. That being the case, we fell immediately but have spent the rest of the time trying to fill that gap.
Any escalation in the tensions in the region will send the USD/JPY sharply lower. However, if calm breaks out and crude oil prices return to last week’s levels then look for further upside action in the Dollar/Yen.
Investing.com - The safe haven yen and Swiss franc look likely to strengthen when markets open this week amid heightened geopolitical tensions in the Middle East after weekend attacks on Saudi oil plants disrupted global oil supplies.
Investing.com - Oil prices will react when markets open after an attack on a key Saudi production facility, amid uncertainty over how much global supply will be disrupted. Investors are also bracing for another interest rate cut from the Federal Reserve this week, as well as a flurry of rate decisions from other world central banks.
The British pound rallied significantly during the week against the Japanese yen, reaching towards the ¥135 level. That of course should attract a lot of attention as it is an area of extreme order flow.