USD/JPY on the edge of sustaining more losses

Technical Analysis

EUR/USD slightly surges on Thursday

"USDollar's breakout earlier this week has stalled and failed to gain broad conviction necessary for trend"

– based on Daily FX

• Pair's Outlook
  The Euro was volatile between the levels of 1.1060 and 1.0980 during Thursday's session against the US Dollar. Most of the volatility was cause by the ECB rate decision and the afterwards press conference. However, it did not change the fact that by the end of the day's trading session the currency exchange rate had moved from 1.1013 to 1.1025, which was a small surge. The surge occurred due to the pair rebounding against the lower Bollinger band in the morning of Thursday. The rate continues to slowly increase on Friday morning, as it had reached 1.1030 level by 5:00 GMT.

• Traders' Sentiment
  SWFX trader sentiment has not changed on Friday, as 51% of open positions remain long. In the meantime, pending orders in the 100-pip range are still short, as 57% of pending commands are short.

GBP/USD attempts to remain above 1.32

"Going forward we expect ... sterling to decline on the back of weaker data, BoE easing and tough and long-lasting UK-EU Brexit talks."

- ABN Amro (based on Business Recorder)

• Pair's Outlook
  The GBP/USD currency pair remained relatively unchanged yesterday, having inched only 24 pips higher, amid mixed UK fundamental data results. However, the Cable opened on top a relatively strong support, represented by the 20-day SMA and the weekly PP, which should keep the Pound elevated. Even with better-than-expected fundamentals today, the UK currency is unlikely to climb over the 1.34 major level, leaving the immediate resistance around 1.3485 intact. On the other hand, we should not rule out the possibility of the bearish development prevailing, due to technical indicators in the daily timeframe giving bearish signals. The key bottom target is the 1.31 psychological level.

• Traders' Sentiment
  Today 58% of all open positions are long, compared to 57% yesterday. Meanwhile, the share of sell orders dropped from 69 to 53%.

USD/JPY on the edge of sustaining more losses

"The dollar continues to benefit from the strength in U.S. equities, which have gone a head above their global peers and are attracting money thanks to high dividends, with strong earnings also helping. This has resulted in 'risk on', sustaining the dollar's rise against the yen."

- IG Securities (based on Reuters)

• Pair's Outlook
  The Japanese Yen overperformed on Thursday, as the USD/JPY currency pair dropped to the 105.80 level, rather than finding support at 106.00. Nevertheless, the anticipated decline took place, leaving the Greenback under a set of resistances once again. The 38.20% Fibo and the 55-day SMA are now likely to prevent the Buck from edging higher, with risks of the 105.00 major level getting pierced again present. Despite the negative outlook, technical indicators in the daily timeframe retain bullish signals, but yesterday's losses are unlikely to be erased completely even if bulls manage take over.

• Traders' Sentiment
  Bears are now in the majority, but taking up only 51% of the market (previously 50%). The number of sell orders also takes the larger part of the market, namely 52%, compared to 45% on Thursday.

Gold returns back to 1,330 level on Thursday

"Gold prices were little changed in North American trade on Thursday, staying close to a three-week low hit overnight as market players digested mixed U.S. data and comments from European Central Bank President Mario Draghi."

– based on investing.com

• Pair's Outlook
  The yellow metal was trading flat at the start of this week, as it slightly fluctuated around the 1,330 level on Monday and Tuesday. However, the metal fell on Wednesday to around the level of 1,312, which seemed to indicate at the bullions new direction. Although, on Thursday gold surged back to 1,330 level, and it continues to be close by it, as the metal was trading at exactly 1,327.40 by 5:15 GMT. It seems that the commodity is most likely to continue to trade flat, as daily aggregate technical indicators forecast no change for it today.

• Traders' Sentiment
  Traders remain neutral on the yellow metal, as 50% of open SWFX positions are long on Friday. In the meantime, pending orders in the 100-pip range are 67% long.

 

Download The Full Daily Forex Technical Overview