Slobodan Drvenica
Windsor Brokers
USD/JPY
The pair was up around 50-pips in Asia / Europe on Wednesday, to pressure again key barrier at 107.47 (daily Tenkan-sen/Fibo 50% of 108.46/106.48 downleg), where the action in past two days was repeatedly capped. The downside remains protected by daily cloud top (106.88) which contained dips on Tuesday / today. North-heading daily stochastic and momentum (though momentum is still in the negative territory) support the action, as fading hopes for US/China trade deal underpin the dollar. Break and close above Tenkan-sen line is needed to generate bullish signal for extension of recovery leg from 106.48 (3 Oct low) towards next pivotal barriers at 107.60/64 (converged falling 100/20DMA's); 107.71 (Fibo 61.8% of 108.46/106.48) and psychological 108 barrier (also Fibo 76.4%). Broken Fibo 38.2% barrier (107.24) and broken daily Kijun-sen (107.15) mark initial supports and guard more significant daily cloud top, close below which would generate negative signal. The minutes of latest FOMC meeting are due later today and may provide fresh signals, as markets turn focus towards key events on Thursday, US CPI data and beginning of high-level US/China trade talks.
Res: 107.47; 107.64; 107.71; 108.00
Sup: 107.15; 106.94; 106.88; 106.63
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 edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.