DAILY MARKET OUTLOOK Update Time: 22 May 2015 08:34 GMT
USD/JPY - 120.80
Although dollar's rally above daily resistance at 120.84 to 121.49 Wednesday signals an 'upside break' of early 10-week long broad range of 122.03-118.33 has taken place, subsequent retreat to as low as 120.64 today suggests choppy consolidation would be seen.
However, reckon 120.27 (previous resistance, now sup) would hold and bring another up move later.
Above 121.49 would extend gain to 121.67 and then towards 2015 peak at 122.03 (March).
Only a failure to penetrate 122.03 and a daily close below 120.27 would indicate price would remain confined inside aforesaid broad range and yield weakness towards 119.83/93 and then 119.40/50.
Recommended Content
Editors’ Picks
AUD/USD remained bid above 0.6500
AUD/USD extended further its bullish performance, advancing for the fourth session in a row on Thursday, although a sustainable breakout of the key 200-day SMA at 0.6526 still remain elusive.
EUR/USD faces a minor resistance near at 1.0750
EUR/USD quickly left behind Wednesday’s small downtick and resumed its uptrend north of 1.0700 the figure, always on the back of the persistent sell-off in the US Dollar ahead of key PCE data on Friday.
Gold holds around $2,330 after dismal US data
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
Bitcoin price continues to get rejected from $65K resistance as SEC delays decision on spot BTC ETF options
Bitcoin (BTC) price has markets in disarray, provoking a broader market crash as it slumped to the $62,000 range on Thursday. Meanwhile, reverberations from spot BTC exchange-traded funds (ETFs) continue to influence the market.
US economy: slower growth with stronger inflation
The dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.