|Day's Range||109.39 - 109.694|
|52 Week Range||104.6670 - 114.5110|
Based on last week’s close at 109.774, the direction of the USD/JPY this week is likely to be determined by trader reaction to the main 50% level at 109.695.
The US dollar continues to levitate a bit against the Japanese yen during the day on Monday, but keep in mind that the Martin Luther King holiday of course would have a lot of influence on what the Americans were doing as they were mainly away from their desks during the day.
The British pound pulled back initially during the trading session on Monday but found enough support underneath to turn around and it stabilized a bit. We are right at the 50 day EMA, and more importantly the ¥141 level. This is an area that has been important more than once.
If the market breaks below the 1.1350 level, then it could break down towards the 1.12 level. The AUD witnessed a massive resistance as it tried to break higher but has pulled back from there. It has been a bit bullish in the market and if the market breaks above the 110 level, then the market could witness a lot of upside pressure.
Investing.com -The safe haven Japanese yen firmed against the dollar on Monday as investors digested the latest signs of a slowdown in China after data pointing to a dip in fourth quarter growth.
Investing.com - The Chinese yuan fell on Monday in Asia after data showed China’s GDP slowed in the fourth quarter.
This week, the price action in the USD/JPY will continue to be driven by the movement in U.S. Treasury yields and appetite for risk. Investors are likely to continue to focus on events regarding U.S.-China trade negotiations although we may see some increased concerns over the partial U.S. government shutdown.
The Trump administration said that new estimates show the cost of the government shutdown will be twice as steep as originally forecast. The original estimate showed that the partial shutdown would subtract 0.1 percentage points from growth every two weeks. That estimate has now been doubled to a 0.1 percentage point subtraction every week.
Based on Friday’s close at 109.706, the direction of the USD/JPY on Monday is likely to be determined by trader reaction to the 50% level at 109.445.
Late Friday, President Donald Trump said he will make a “major” announcement on Saturday about the border and ongoing government shutdown. China offers to increase its annual import of U.S. goods by a combined value of over $1 trillion.
The U.S. dollar strengthens across the board as investors remained optimistic on U.S.-China trade talks, putting the greenback on track to finish the week in the green for the first time since mid-December.
Bloomberg news is saying that Chinese officials made the offer during the mid-level trade talks earlier in the month. Furthermore, China offered to increase its annual import of U.S. goods by a combined value of over $1 trillion, the officials told Bloomberg, which was the first to report on the import boost offer.
The US dollar rallied a bit during the week, breaking above the top of the previous week which of course is a very bullish sign. However, I think there is plenty of resistance just above just waiting to get involved, showing signs of exhaustion will attract a lot of attention.
The British pound rallied significantly during the week after the vote on the Brexit, and hopes appearing that perhaps the Brexit will be delayed. This is short-term positive for the British pound, so obviously it carried over in this market as well.
The US dollar has rallied again during the trading session on Friday, breaking above the top of the neutral candle stick for Thursday, which of course is a bullish sign. However, longer-term we have to look at the totality of the picture, and therefore I think the upside might still be somewhat limited.
The British pound initially tried to rally again during the day on Friday, but then rolled over as we have gotten a bit ahead of ourselves. That being said, I think there is support underneath as well so the question is whether or not it is going to be and exhaustion play, or is it just simply pulling back to find more momentum underneath.
Investing.com – The dollar was set to snap a four-week losing streak against its rivals Friday, on the back of a decline in the Japanese yen. The gains come amid growing investor optimism over a U.S-China trade deal after Chinese officials reportedly offered to boost U.S. imports.
The greenback picked up steam on Friday despite U.S. consumer optimism hitting its lowest level since Donald Trump was elected president and the government shutdown moving into its 28th day. The dollar was supported by a stronger-than-expected report for U.S. industrial production in December, in which manufacturing posted an impressive 1.1% gain from November.
The Euro continued with its back and forth momentum in the Thursday’s session as the 1.14 level has been important in the short term charts and also attracting a lot of interest. Going forward, the market will continue to grind higher, as it is trying to form a bit of rounded-bottom pattern but the 1.15 level above is likely to offer significant resistance and of course the 200 Day EMA level above. …Read MoreGBP/USD
Geo-political risk will remain the key driver ahead of the weekend, with Brexit and the possibility of a reduction in tariffs on Chinese goods on the table.
Investing.com - The U.S. dollar was little changed on Friday in Asia after trading slightly higher earlier in the day amid optimism of progress in Sino-U.S. trade talks.
The US dollar has pulled back during early trading on Thursday, as the ¥109 level has offered significant resistance. By pulling back the way it has, the market looks very likely to continue to chop between the 100 a young level underneath and the ¥109 level above.
The British pound has fallen against the Japanese yen only to find support again at the 140 young level. We are heading to a major crossroads, and I think the next couple of days could be rather volatile.
Investing.com – The U.S. dollar little changed Thursday as mostly upbeat economic data was offset by strong rise in sterling on bets the U.K. will avoid leaving the EU without a trade deal.