Slobodan Drvenica
Windsor Brokers
USD/JPY
The pair fell to new 1 1/2 month low on Thursday, maintaining strong bearish tone for the fourth straight day.
Bears were little affected by Fed on overnight's brief jump to 105.17, before returning below 105 handle.
The Bank of Japan, in its policy meeting today, kept monetary policy unchanged as expected and offered slightly upgraded view on the economy than in July, suggesting that there is no need for expansion of stimulus for the time being.
Fresh extension lower probes again through pivotal Fibo support at 104.86 (76.4% of 104.18/107.04) which was cracked on Wednesday but failed to register daily close below.
Sustained break here would further weaken near-term structure for push towards key support at 104.18 (31 July low).
Bearish setup of daily moving averages maintains pressure, however, oversold stochastic and 14-d momentum bounce, warn of consolidation preceding fresh push lower. Selling upticks remains favored scenario as long as price action stays under falling daily Tenkan-sen (105.53).
Res: 104.86; 105.17; 105.28; 105.53
Sup: 104.68; 104.18; 103.51; 103.09
Interested in USD/JPY technicals? Check out the key levels
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.
Recommended Content
Editors’ Picks
EUR/USD retreats below 1.0700 after US GDP data
EUR/USD came under modest bearish pressure and retreated below 1.0700. Although the US data showed that the economy grew at a softer pace than expected in Q1, strong inflation-related details provided a boost to the USD.
GBP/USD declines below 1.2500 as USD rebounds
GBP/USD declined below 1.2500 and erased the majority of its daily gains with the immediate reaction to the US GDP report. The US economy expanded at a softer pace than expected in Q1 but the price deflator jumped to 3.4% from 1.8%.
Gold holds near $2,330 despite rising US yields
Gold stays in positive territory near $2,330 in the second half of the day on Thursday. The benchmark 10-year US Treasury bond yield is up more than 1% on the day above 4.7% after US GDP report, making it difficult for XAU/USD to extend its daily rally.
XRP extends its decline, crypto experts comment on Ripple stablecoin and benefits for XRP Ledger
Ripple extends decline to $0.52 on Thursday, wipes out weekly gains. Crypto expert asks Ripple CTO how the stablecoin will benefit the XRP Ledger and native token XRP.
After the US close, it’s the Tokyo CPI
After the US close, it’s the Tokyo CPI, a reliable indicator of the national number and then the BoJ policy announcement. Tokyo CPI ex food and energy in Japan was a rise to 2.90% in March from 2.50%.