DAILY MARKET OUTLOOKUpdate Time: 26 Aug 2015 08:20 GMT
USD/JPY - 119.58
Despite the greenback's spike down to a fresh 7-month trough at 116.15 yesterday on the global rout in stock markets due to growth concerns in China, subsequent strong rebound to 120.11 today suggests a temporary low has been made there and consolidation with upside bias would be seen for a stronger retracement towards 120.40/42.
However, near term loss of momentum would keep price below 121.28 and bring another fall later this week.
On the downside, only below 118.25 would indicate aforesaid correction has ended and turn outlook bearish for a resumption of recent downtrend from June's high at 125.86 for a re-test of 116.17.
Recommended Content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.