|

USD/JPY Forecast: Pullback to 110.80-110.66 would be short lived

4-hour Chart

Observations –

Bearish price-MACD divergence

Bullish 50-MA & 100-MA crossover

Resistance: 111.40 (1-hour 50-MA), 111.82 (100-DMA), 112.13 (May 24 high)

Support: 111.11 (50-DMA), 110.81 (June 9 high on 4-hour chart), 110.66 (200-DMA), 110.53 (1-hour 200-MA)

Comments

The bearish MACD divergence and oil-led risk-off could yield a pull back to 110.81 – 110.66, although the broader outlook remains constructive given the bullish price action on the weekly chart and the bullish crossover between 50-MA & 100-MA on the 4-hour chart.

Only a daily close below 110.66 (200-DMA) would signal the rally from 108.80 has ended at 111.79 and would revive the bearish trade.

View: Pull back to sub-101 likely to be short lived.

NZD/USD Forecast: Bullish exhaustion, eyes dub-0.72 levels

Daily chart

Observations –

Bearish price MACD divergence

Bearish crossover on MACD

Inverted bearish hammer on June 19

RSI turning lower from overbought territory

4-hour chart

Bearish breakdown from symmetrical triangle

Comment

Kiwi looks set to test 0.7200 (zero figure + 23.6% Fib R of 0.6818-0.7319) and 0.7185 levels. By then, the 1-hour RSI would have hit the oversold territory, thus the support at 0.7185 is likely to stay intact.

Author

Omkar Godbole

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

More from Omkar Godbole
Share:

Editor's Picks

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans. 

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.