|Day's Range||132.351 - 132.335|
|52 Week Range||132.3510 - 132.3355|
Having breached 107.00 and the 106.70 support-marks, the USDJPY seems all set to test an upward slanting trend-line support on the weekly chart, which stays around 106.00 now; however, its further south-run can be restricting by a downward slanting TL support of 105.50, which if broken could enable Bears to demand 104.20 and the 102.80 numbers. Meanwhile, an upside break of 106.70 and the 107.00 could trigger the pair’s recovery in direction to 108.00, the 108.50 and then to the 108.80 resistances. Should prices manage to rise beyond 108.80, the 109.50 and the 110.20 may please the buyers. ...
Euro/Dollar’s short and long term indicators are mostly neutral, but the mid term shows mixed results. The close to 25% long interbank is bullish. The Cable has 6 neutrals in both the short and long terms.
Japanese Yen. First of all, yes, when the stocks slide, JPY gets stronger and we all know that indices just had a hell of a ride. It is slowly happening, which is definitely a positive sign for the Yen.
Neutral models prevail on Euro/Dollar’s hourly chart, but the 4 and 24-hour scales turn bullish with 6 and 7 studies, respectively, and they are in line with the more than 16% long interbank. There’s green across the table for the Pound/Dollar, which sees 6 bullish models in the short-term, 7 in the mid-term and 5 in the long-term, but, in contrast, the interbank is neutral at less than 8% short. Dollar/Yen sees 7 sell prompts on both its short and mid-term charts and 4 neutral signals on its long-term scale, but the technicals are not supported by the interbank, which is bullish at more than 19% long.
The Euro has been able to achieve noteworthy gains the past two days against the U.S Dollar, but trading volumes remain light and strong resistance looms ahead.
While many believed at the beginning of 2017 that the dollar would dominate the currency markets, most were surprised by the declining value of the greenback throughout the year.
The 24-hour scale is mostly bullish, but the interbank is neutral at less than 14% long, matching the short and mid-term technicals. The Cable sees a mix of green and neutral models on both its short and mid-term charts. The 24-hour scale turns neutral with 5 studies, and it is supported by the less than 6% short interbank.
Gold, after triggering a major sell signal on the 5th of December, went significantly lower but the last few days we had a bullish correction here which aimed the previously broken support. Well, the upswing is shaped like a wedge so it promotes the further drop. Another one is the EURJPY, which finally escaped from the sideways trend present here since September.
The Bank of Japan will issue their Monetary Policy Statement tomorrow and no major changes are expected. The Yen has been range trading mid-term, but has weakened early this morning against the U.S Dollar and may provide an opportunity for traders to take advantage of its consolidation. The Yen has traded in a weaker manner early this morning and has gone above the 113.00 level against the U.S Dollar.
The mid-term is mostly bullish, and the long-term sees a mix of red and neutral models. Next up is the Cable with 5 neutral models on its hourly chart. The interbank is neutral as well at less than 6% short, matching the 1 and 24-hour models.
The Euro has tracked higher in value early this morning. The Euro continues to meet tests against the U.S Dollar with solid support and renewed strength.
The Euro continues to experience headwinds in the short term as traders remain cautious due to knock-on effects from the Pound as political concerns remain about the Brexit. However, the Euro is intriguing moving forward and may find buyers who believe it should be valued higher.
Traded volume is in line with the monthly average, and the neutral trader’s sentiment stands at 11% short. Trading has been slow, and the neutral trader’s sentiment stands at 5% long. This pair sees a quarter less funding than usual, and the sentiment is neutral at 8% short.
Dollar Index maybe does not show it perfectly as its mostly made from EUR so another strong currency but the USDJPY is definitely bullish. Ahead of this important event for the markets, the USDJPY is giving some bullish signals. After that, buyers managed to break a very important horizontal resistance on the 113.10 (grey) and later used that as the closest support.
The US Dollar strengthened during the previous week on US tax reform and Friday’s non-farm payrolls data showed the economy created more jobs than expected in November.
There’s red across the table for the Euro/Dollar, which sees 6 sell prompts in both the short and long-term and no less than 7 bearish signals in the mid-term, but, in contrast, the interbank is neutral at less than 12% long. Dollar/Yen has bullish models prevailing in all three time ranges, with 6 buy prompts in the short-term, 7 in the mid-term and 5 in the long-term, and they indeed are in line with the more than 23% long interbank. Pound/Yen also has green signals dominating across the chart, as it sees 5 buy prompts in both the short and long-term and 7 in the mid-term, but they are not supported by the interbank, which is neutral at less than 11% long.
The Euro’s relative tranquility the past two days may be positive for traders. Two key risk events will take place next week, the U.S Fed interest rate decision, and the U.K and E.U Brexit Summit. These events could be a positive lynchpin for the Euro.
The Yen has weakened in recent trading against the U.S Dollar as risk appetite has not entirely disappeared among Asian traders. If U.S equities produce gains in the short-term, Japanese equities may see additional buying too, which could spark further Yen weakness.