The FX markets have been fairly quiet so far this week and price action on the whole has been range bound. Indeed, after last week’s rally, safe haven Japanese yen pairs have all pulled back a little at the start of this week, despite the fact global equity indices have marched on higher. Thus, if we are to see the re-emergence of a trend in FX, it will likely be in yen pairs pushing higher along with stocks. With the likes of the USD/JPY, EUR/JPY, AUD/JPY and CAD/JPY all pushing higher for 3 consecutive weeks, I wouldn’t be surprised if any of these pairs were to turn around now and push higher again.

Among the yen pairs, the EUR/JPY will be a good one to watch for further developments this week, ahead of the Eurozone PMI data on Thursday. Technically, this pair looks somewhat bullish after it broke above its short term bear trend and resistance around 125.45 to 125.70 last week, before stalling at 126.80. The 125.45-125.70 range is now the key support area that needs to be defended to keep the bullish trend intact. Meanwhile, any move above the 126.80 level is likely to trigger further technical buying, initially towards the 200-day moving average (127.32) or the long-term 61.8% Fibonacci retracement level (127.65).

Figure 1:

EURJPY

Source: TradingView and FOREX.com.

Risk Warning Notice Foreign Exchange and CFD trading are high risk and not suitable for everyone. You should carefully consider your investment objectives, level of experience and risk appetite before making a decision to trade with us. Most importantly, do not invest money you cannot afford to lose. There is considerable exposure to risk in any off-exchange transaction, including, but not limited to, leverage, creditworthiness, limited regulatory protection and market volatility that may substantially affect the price, or liquidity of the markets that you are trading. Margin and leverage To open a leveraged CFD or forex trade you will need to deposit money with us as margin. Margin is typically a relatively small proportion of the overall contract value. For example a contract trading on leverage of 100:1 will require margin of just 1% of the contract value. This means that a small price movement in the underlying will result in large movement in the value of your trade – this can work in your favour, or result in substantial losses. Your may lose your initial deposit and be required to deposit additional margin in order to maintain your position. If you fail to meet any margin requirement your position will be liquidated and you will be responsible for any resulting losses.

Feed news

Latest Forex Analysis

Editors’ Picks

EUR/USD: Snaps four-day winning run, but bull breakout still valid

EUR/USD fell 0.28 percent on Tuesday, engulfing Monday's high and low and ending the four-day winning streak. The currency pair however, defended the former resistance-turned-support of the 200-day MA.

EUR/USD News

GBP/USD retraces from 5-week high amid fewer fresh catalysts from UK

While renewed fears of no-deal Brexit and less dovish Fed speak dragged the GBP/USD pair back from a month’s high, the Cable trades little changed near 1.2690 during early Wednesday.

GBP/USD News

USD/JPY: Bulls back in charge, re-takes 107.50

The less dovish rhetoric from a selection of Fed speakers overnight continues to aid the post-FOMC US dollar recovery, prompting the USD/JPY pair to retest the midpoint of the 107 handle despite negative Asian equities. 

USD/JPY News

Conference Board Consumer Confidence: The China syndrome

The index declined to 121.5 in June from April’s revised 131.3. A much more modest drop to 131.2 had been predicted.  “The escalation in trade and tariff tensions earlier this month appears to have shaken consumers’ confidence,” wrote Lynn Franco.

Read more

Gold bulls target $1485/oz

Gold prices rallied in Asia but stalled and started to deteriorate in European markets into consolidation before a sell-off emerged on the back of less dovish than expected rhetoric from Fed speakers on New York.

Gold News

Majors

Cryptocurrencies

Signatures