|Day's Range||109.09 - 109.744|
|52 Week Range||104.6670 - 114.7250|
Based on last week’s price action, the direction of the USD/JPY is likely to be determined by trader reaction to the 50% level at 109.137.
The inside move on Friday may have been an indication that changes may be taking place over the North Korean situation behind the scenes.
Three major events drove the two-sided price action in the U.S. Dollar last week including renewed geopolitical concerns over a potential trade war between the United States and China, renewed tensions over North Korea and dovish Fed minutes. However, the dollar index was supported by a weaker Euro.
The US dollar fell during the week against the Japanese yen, as the ¥111 level has offered significant resistance. We have turned around rather drastically, testing the ¥109 level. When you look at these past two candles, you can make out a shooting star when you combine them. Otherwise, the other thing you should notice is that we have had a couple of shooting stars before then as well.
The British pound broke down below the major uptrend line on the weekly chart over the past week, showing signs of weakness. Because of this, I think that the market is in a lot of trouble, and we should continue to see sellers jump into this market.
The US dollar initially rallied against the Japanese yen on Friday but fell again to reach towards the ¥109 level. The market looks as if it is trying to find some type of bottom as of late, and I certainly favoring the upside on the longer-term, but it appears that we are not quite ready to go higher.
The British pound fell again against the Japanese yen during the Freddie session, but continues to find support near the ¥145.50 level. I think that the market is currently struggling with the idea of breaking below the major uptrend line, but right now it must be said that it looks likely that we will continue to go a bit lower from here.
Investing.com – The U.S. dollar rose to a sixth-month high as mostly positive U.S. durable goods data suggested the U.S. economy was strong enough to sustain further Fed rate hikes.
The U.S. dollar strengthened against most of its main rivals Friday in New York, as a popular gauge of the currency hit a fresh 2018 high, and as traders digested a week in which the Federal Reserve signaled that it may adopt a more measured approach to hiking interest rates even if inflation runs ahead of its 2% annual target. An escalation of tensions between the U.S. and North Korea, which appeared to ease somewhat early in the session, and trade talks with Washington and Beijing contributed to a week marked by up-and-down trade. The ICE U.S. Dollar Index (IFUS:DX-Y.NYB), which gauges the U.S. unit against a half-dozen currencies, was up 0.5% at 94.197, headed for 0.6% return on the week.
On Friday North Korean leader Kim Jong Un said he was still open to talks after the White House said in a statement that it would be "inappropriate" to have a planned summit at this time. Trump and Kim Jong Un were set to meet in Singapore on June 12 to discuss possible denuclearization. Durable goods in the U.S. fell 1.7% in April, compared to expectations of a 1.4% decrease while a separate report showed that the University of Michigan Consumer Sentiment index was revised down to 98.0 from 98.8.
The greenback was flat on Friday while the pound inched down as investors looked ahead to testimony from Fed Chair Jerome Powell and Bank of England Governor Mark Carney. Both Federal Reserve Chairman Jerome Powell and BOE Governor Mark Carney are expected to participate in a panel discussion of "Financial Stability and Central Bank Transparency" at the "Sveriges Riskbank Conference: 350 Years of Central Banking - The Past, The Present and The Future" in Stockholm, Sweden at 9:15 AM ET (13:15 GMT). The dollar was also held back by Fed meeting notes on Wednesday that suggested that while another interest rate hike is warranted, the central bank would accept inflation rising above its target rate for a while.
The Euro has rallied a bit during the Thursday’s session against dollar using 1.17 level as support. The pair moved slightly higher during the yesterday’s session reaching towards the 1.34 level. The pair traded on a quiet note and hanged around the 0.7550 level during the yesterday’s session.
Investing.com – The dollar rose against the other major currencies in Asia in late morning trade Friday, with the U.S. dollar index testing the 94 level. The market appeared to take in stride news that U.S. President Donald Trump decided to cancel a planned summit with North Korean leader Kim Jong Un.
With inflation continuing to be a problem for the BoJ, BoE Governor Carney and FED Chair Powell are scheduled to speak through the day, monetary policy divergence becoming every more evident in the markets at present.
The US dollar bounced a bit during the day on Thursday against the Japanese yen, as it looks likely that we are trying to form some type of basing pattern. However, we may have some work to do before we can put a lot of money into this pair again.
The British pound rallied slightly during the trading session on Thursday, reaching towards resistance against the Japanese yen. The ¥147.25 level turned the market around slightly though, and this is also the scene of a previous uptrend line, so that of course will work against any rally’s as well.
Traders also booked profits on the notion that the recent rally had run its course especially after the release of dovish Fed minutes on Thursday that signaled the central bank would not be as aggressive when raising interest rates in 2018.
The U.S. dollar index extended its recent downtrend Thursday, pulling further from a 2018 peak, after President Donald Trump canceled a North Korean summit and potential import tariffs on cars brought up renewed fears over trade wars. The Turkish currency hit a historic low against the U.S. unit on Wednesday, before its central bank intervened to stabilize the currency.
Investing.com – The dollar was hit by a fresh wave of selling Thursday, losing ground against its rivals following negative U.S. data showing a slowdown in the U.S. housing and labor market.
The greenback remained lower on Thursday after an unexpected dovish-tone in the latest Federal Reserve meeting minutes and news that the White House had called off a planned summit with North Korea. The White House said in a statement that it would be "inappropriate" to have a planned summit at this time. Trump and North Korea leader Kim Jong Un were set to meet in Singapore on June 12 to discuss possible denuclearization.
The South Korean won plummeted as President Donald Trump canceled the U.S.-North Korea summit scheduled to be held in Singapore next month. The U.S. dollar gained 0.7% on South Korea's currency , last fetching 1,084.89 won.
With the month-long symmetrical triangle restricting the EURGBP moves between 0.8720 & 0.8800, chances of the pair’s recent pullback to test 0.8720 support and take a U-turn from there are higher. GBPJPY’s break of nine-month old ascending trend-line signals the pair’s further downside to the 144.95-145.15 rest-zone but its additional south-run can be confined by oversold RSI, which if ignored can drag the pair to 143.00 support.
Today, we do have three pairs with the Japanese Yen. The first one is the GBPJPY, which is giving us a super strong long-term sell signal. The pair already broke all major supports and now is testing the closest one as a resistance. The first contact was bearish but it seems like we will have another test soon. Double top on such an important level can be a marvelous trading opportunity.
Investing.com - Sterling was higher on Thursday after UK retail sales came in higher than expected, boosting confidence in the economy.UK retail sales rose 1.6% in April, compared to expectations for a 0.1% gain, the Office for National Statistics reported. The unexpected increase indicates consumer confidence in the UK economy, despite political uncertainty surrounding Brexit.GBP/USD surged 0.46% to a one-day high of 1.3410 as of 4:43 AM ET (8:43 GMT).The euro was also higher, but was held back by economic and political worries in Europe. ...
The market continued to remain weak and negative during the Wednesday’s session breaking below the 1.17 level. By going below this level, the market is more likely to fall towards its next major support level at 1.15 level underneath. Short-term rallies in the market will be an excellent opportunity to sell this market as it offers value in the USD. …Read MoreGBP/USD