Slobodan Drvenica
Windsor Brokers
USD/JPY
USDJPY accelerated higher on Wednesday, as traders collected some profits from steep fall in past few days, fueled by risk aversion which boosted demand for safe haven yen.
Japanese currency made an impressive rally of 8.5% vs US dollar in July and early August, boosted by recent interventions and BOJ rate hike, while the latest strong migration into safety lifted yen to eight-month high.
Today’s comments by BOJ official showed unexpected shift in policy outlook, souring the sentiment and adding pressure on yen.
Fresh acceleration after Tuesday’s Doji candle with long upper shadow signaled indecision, adds to recovery signals and the price broke above initial resistance at 146.43 (Fibo 23.6% of 161.80/141.68 fall) with close above this level to reinforce near term structure for extension towards targets at 149.36 and 150.00 (Fibo 38.2% / psychological).
Adding to positive near term signals was a false penetration into weekly cloud, with long tailed weekly Doji and formation of a bear trap.
However, daily studies are predominantly in bearish configuration (MA’s above the price / momentum deeply in negative territory) and require caution.
Lift above daily Tenkan-sen (148.45) will be needed to ease existing downside risk, while break of 149.36/150.00 pivots to signal reversal.
Res: 147.90; 148.45; 149.36; 150.00.
Sup: 146.43; 143.62; 141.68; 140.00.
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
AUD/USD buyers stay directed toward 0.6800 after China's inflation data
AUD/USD extends gains toward 0.6800 in the Asian session on Monday, recovering from a three-week low touched on Friday. The pair holds higher ground, undeterred by the softer-than-expected China's inflation data amid a pause in the US Dollar recovery and risk reset.
USD/JPY clings to recovery gains below 143.00
USD/JPY is holding recovery gains below 143.00, positively kicking off the new week. Friday's late US Dollar rebound and Japan's Q2 GDP downward revision support the pair, though the divergent BoJ-Fed policy expectations should cap its upside. All eyes remain on US CPI data due later this week.
Gold price consolidates below $2,500 mark, bullish potential seems intact
Gold price stalls the post-NFP retracement slide from the vicinity of the all-time peak. Reduced bets for a larger rate cut by the Fed underpin the USD and act as a headwind. Worries about the US economic slowdown and geopolitical risks continue to offer support.
Week ahead: ECB poised to cut again, US CPI to get final say on size of Fed cut
ECB is expected to ease again, but will it be another ‘hawkish cut’? US CPI report will be the last inflation update before September FOMC. UK monthly data flurry begins with employment and GDP numbers.
Aptos, Stark, XAI, Render prepare for $111 million cliff unlocks this week
The crypto market is set to witness cliff unlocks totaling $111 million next week. Aptos and Starknet will see the highest volume, with new tokens entering circulation worth $64 million and $25 million, respectively.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.