Slobodan Drvenica
Windsor Brokers
USDJPY
The US dollar rallied around 100 pips against Japanese yen, appreciating hawkish tone from Fed and spiked to fresh two-month highs.
Post-Fed bullish acceleration resulted in a comfortable break above key barriers at 111.61/75 (daily cloud top / Fibo 61.8% of 114.49/107.31 descend) and lift above 200SMA (112.23), signalling continuation of steep uptrend from 107.31 (08 Aug low), which was interrupted on Tuesday’s hesitation to clearly break above 111.61/75 pivots.
Fresh bullish acceleration is heading towards target at 112.80 (Fibo 76.4%) and may extend further as existing strong bullish sentiment was boosted by hawkish Fed’s stance which provided additional boost to dollar’s bulls.
Sustained break above 112.80 and 112.99 barriers (the latter marks 50% retracement of larger 118.66/107.31 descend( would open way towards former double top at 114.36/49 (07 May / 09 July highs, also Fibo 61.8% of 118.66/107.31 fall).
Some corrective action on profit taking on overbought studies should be anticipated, but so far there are no signals of such movements.
Res: 112.80; 112.99; 113.50; 114.02
Sup: 112.23; 111.75; 111.61; 111.12
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 clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.