USD/JPY underpinned by monthly PP

Technical Analysis

EUR/USD jumps above 1.25

“With inflation low and wage growth weak, the Fed can afford to be patient. A pickup in wage growth in 2015 won't likely change matters, either.”

- Pimco (based on CNBC)

• Pair’s Outlook

  Most traded currency cross on the FX market rebounded considerably on Tuesday, as the Euro surged above the monthly PP. Moreover, it has even breached the weekly R1 but closed below it at 1.2510, being that this supply zone is reinforced by 55-day SMA, Bollinger band and the monthly R1. Nevertheless, right now we would assume the EUR/USD pair to trade between 1.2470 and 1.2550 in the short-term, while daily indicators still remain neutral.

• Traders’ Sentiment

  Distribution between long and short opened positions stayed unchanged from yesterday, as former still take 42% of them. Pending orders in 100-pip range slipped down, as now only 40% of traders are planning to acquire the Euro versus the Buck.

GBP/USD tests monthly PP at 1.5756

“This was a demanding test. The results show that the core of the banking system is significantly more resilient, that it has the strength to continue to serve the real economy even in a severe stress, and that growing confidence in the system is merited.”

- Mark Carney, Bank of England Governor (based on Daily Mail)

• Pair’s Outlook

  The pair continue to hold its positions above the 1.57 level; however, at the same time its seems to be somewhat stuck between the weekly and monthly PPs. The fact that the weekly technical studies are strongly bearish could eventually drag the Sterling lower. Nonetheless, if the currency pair breaches the monthly PP then a rally towards the weekly R2 at 1.5888 could follow.

• Traders’ Sentiment

  The sentiment of the SWFX traders basically has not changed, as the amount of bullish traders increased just one percent and now stays at 51%. The distribution between the buy and sell orders is also very stable—51% and 49% respectively.

USD/JPY underpinned by monthly PP

“Abe is escaping narrow-minded ways of thinking -- he has his own ideas and approach.”

- Former Yale University economist (based on Bloomberg)

• Pair’s Outlook

  After a brief dip below the weekly S1 and monthly PP at 116.92/75 yesterday, USD/JPY rebounded above the support levels. The pair is likely to sustain its positions above the previously mentioned support levels and to climb higher. The technical indicators have not changed since yesterday, as the weekly and monthly ones remain neutral, while the daily ones are negative.

• Traders’ Sentiment

  The sentiment of the SWFX market participants have not changed since the last time of writing and it remains neutral with respect to USD/JPY - 52% of the market participants are long. At the same time the gap between the buy (53%) and sell (47%) orders is narrowing.

Gold's decline stopped by weekly S1

“Market chatter regarding sales of Russian gold reserve is just that chatter.”

- GoldCore (based on MarketWatch)

• Pair’s Outlook

  On Tuesday, the price of Gold was very volatile. During some points of time the bullion managed to climb even above the weekly pivot point, which is located at $1,215. However, fundamental factors pushed it back to trade lower, which resulted in the closure just above the weekly S1 at $1,197. As daily technical studies support the sideways movement, we would suggest Gold to hover around $1,200 in the nearest future.

• Traders’ Sentiment

  The gap between long and short positions for Gold on the SWFX market was just little changed in course of last 24 hours, as the bulls are still holding the confident majority of all trades, namely 74% of them.