A positive reaction to the US housing data yesterday resulted in some building traction in a dollar rebound (at least against the biggest safe haven, the yen). This has driven an interesting positive development on USD/JPY, with a move above near term resistance at 107.60. Up until yesterday afternoon, the bulls had been struggling to really get a foothold for recovery within in the medium term range. However, now we see the early stages of a near term uptrend (just one week old). With an encouraging positive bias this morning, the bulls will be looking for a decisive close above 107.60 to break clear of this resistance. This would then imply a rebound target towards 108.60. The move is backed by momentum, where MACD lines are bull crossing for the first time since early May (when the pair then went on a four week rally), whilst RSI is above 50 and Stochastics swinging decisively higher. The hourly chart shows the near term importance of holding support of 107.45/107.60 now which is a near term buy zone. Support at 106.80 is a growing important higher low too.
Risk Warning for Financial Promotions
Hantec Markets' various market reports and commentary are issued by Hantec Markets Limited, who is authorised and regulated by the Financial Conduct Authority (FCA) in the UK, No. 502635. The reports are prepared and distributed for information purposes only.
Trading in Foreign Exchange (FX), Bullion and Contracts for Differences (CFDs) is not be suitable for all investors due to the high risk nature of these products. Forex, Bullion and CFDs are leveraged products that can result in losses greater than your initial deposit. The value of an FX, Bullion or CFD position may be affected by a variety of factors, including but not limited to, price volatility, market volume, foreign exchange rates and liquidity. You may lose your entire initial stake and you may be required to make additional payments. Please ensure you fully understand the risks involved, seeking independent advice if necessary prior to entering into such transactions. Before deciding to enter into FX, Bullion and/or CFD trading, you should carefully consider your investment objectives, level of experience, and risk appetite. You should only invest in FX, Bullion and/or CFD trading with funds you are prepared to lose entirely. Therefore, only your excess funds should be placed at risk and anyone who does not have such excess funds should completely refrain from engaging in FX and/or CFD trading. Do not rely on past performance figures. If you are in any doubt, please seek further independent advice.
The reports do not constitute personal investment advice, nor do they take into account the individual financial circumstances or objectives of the clients who receive it. All information and research produced by Hantec Markets is intended to be general in nature; it does not constitute a recommendation or offer for the purchase or sale of any financial instrument, nor should it be construed as such. All of the views or suggestions within the reports are those solely and exclusively of the authors, and accurately reflect their personal views about any and all of the subject instruments and are presented to the best of the authors' knowledge. Any person relying on these reports to undertake trading does so entirely at his/her own risk and Hantec Markets does not accept any liability.
© 2014 Hantec Markets Limited