|Day's Range||0.009 - 0.009|
|52 Week Range||0.0088 - 0.0095|
Based on the early price action and the current price at 108.518, the direction of the USD/JPY the rest of the session on Monday is likely to be determined by trader reaction to Friday’s close at 108.408.
The progress in the U.S.-China trade talks may be a positive that underpins the USD/JPY. Meanwhile, the Brexit talks create more uncertainty that could weigh on demand for risky assets.
The Aussie surged on Thursday and Friday to its highest level since September 18 after RBA Governor Philip Lowe’s latest view that a return to near 3 percent economic growth is “quite probable” by next year and that further interest rate cuts should not be assumed.
While China’s economy slowed in the 3rd quarter, things could have been much worse. Relief all round as focus now shifts to Brexit…
European Union and British negotiators have agreed on an outline Brexit deal which still needs to be backed by EU member states and by the respective parliaments.
Basically, if today is clearly a “risk-on” day then we expect the USD/JPY to strengthen. “Risk-off” will put pressure on the Forex pair. The current price action suggests investors still aren’t sure about how to play the risk game. This is helping to generate the sideways performance.
Based on the early price action and the current price at 108.773, the direction of the USD/JPY the rest of the session on Thursday is likely to be determined by trader reaction to the downtrending Gann angle at 107.598.
The US dollar has pulled back slightly against the Japanese yen during the trading session on Wednesday, reaching down towards the 200 day EMA. This is an area that obviously will attract a lot of attention, and therefore a longer-term traders are suddenly involved.
The markets are relatively calm overnight despite the threat of countermeasures by China to the U.S. legislation supporting the Hong Kong protesters. However, investors have taken precautionary steps by buying the Japanese Yen, gold and Treasury bonds for protection.
Most Asian stocks are following their US counterparts higher, after strong earnings reports out of US banks gave equities another reason to climb higher, after the risk-on momentum from the US-China trade truce faded.
The US dollar pulled back a bit during the trading session on Tuesday, as we continue to press against a major area of resistance in the USD/JPY pair.
It was a quiet Monday session with the U.S. and parts of Asia out for bank holidays. Risk assets skewed lower, and US equities fell back a little on Monday after China signalled it wants more discussion to iron out details of any partial deal before signing it, including the removal of added tariffs planned for December.
The US dollar chopped back and forth during the trading session on Monday as the 200 day EMA continues to cause bits and pieces of resistance. Beyond that, the market is extraordinarily sensitive to a handful of issues going on around the world, not the least of which would be the lackluster performance of US/Chinese negotiators.
A “risk off” day on Monday should keep the pressure on the USD/JPY. This is already being fueled by a report from Bloomberg News that said China needed to have further discussions before it would sign off on the so-called “phase one” trade deal President Donald Trump announced on Friday.
Based on the early price action and the current price at 108.318, the direction of the USD/JPY on Monday is likely to be determined by trader reaction to the uptrending Gann angle at 108.235.
The Dollar found strong support early, as the markets considered the implications on existing tariffs on the economic outlook. Brexit chatter also weighed.
The announcement of the first phase of a substantial trade deal was obviously bullish for the Dollar/Yen, but since there was so much long speculation ahead of the announcement, most of the good news was probably priced into the Forex pair.
The US dollar has rallied significant during the week, reaching towards the ¥108.50 level. At this point, there is a significant amount of resistance just waiting to happen, so if it were to be broken it’s very likely that the market could go looking towards the ¥110 level. However, if we break down, the ¥107 level should be supportive.
The US dollar has rallied significantly during the trading session on Friday, crashing into the ¥108.50 level. The 200 day EMA is just above, and it’s very likely that the market could turn right back around, based upon basic technical analysis.
The USD/JPY is going to continue to more higher and could even accelerate to the upside if buyers can take out the recent top at 108.478. This could create the upside momentum needed to challenge the August 1 top at 109.317. A breakout will be triggered by the announcement of any positive news from the trade talks.