EUR/JPY: 115 Fibo is a key resistance for the 118 handle - FXStreet

Ross J Burland FXStreet

Valeria Bednarik, chief analyst at FXStreet explained that the Japanese yen weakened during US trading hours, undermined by better-than-expected US Consumer Confidence figures, leading to an advance up to 114.93 in the EUR/JPY pair, a fresh August high.

Key Quotes:

"After trading in a well-limited range for over three weeks, the pair finally broke higher, as hope for a US rate hike before the year end put the safe-haven currency under strong selling pressure, even despite the poor performance of Wall Street this Tuesday."

"Technically, the 1 hour chart shows that technical indicators have lost upward strength within overbought territory, supporting some consolidation ahead before the next directional move. Nevertheless, the upside is favored, as the price has moved well above its 100 and 200 SMAs, with the shortest accelerating north above the largest."

"In the 4 hours chart, technical indicators head sharply higher, entering overbought territory and with no signs of changing bias at the time being, while the price has surpassed its moving averages, for the first time since late July.

The pair has a Fibonacci resistance around 115.00, the 38.2% retracement of the latest bullish run. Having held above the 61.8% retracement of the same rally, a recovery beyond that 38.2% retracement should support a steadier advance up to 118.46, July 21st daily high."

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

EUR/USD: Gains remain capped by 1.1650

EUR/USD remains in recovery-mode following the closing bell in Euroland on Wednesday, hovering around the 1.1650 zone amid renewed downside pressure on the US Dollar and a marginal improvement in the global sentiment.

GBP/USD appears bid around 1.3370

GBP/USD reverses part of its recent multi-day decline, gathering some balance and managing to reach the 1.3400 region, where some initial resistance seems to have turned up. Cable’s uptick comes in response to some loss of momentum in the Greenback despite the geopolitical scenario remaining fragile.

Gold recovers modestly despite intensifying Middle East crisis

Gold keeps its daily gains well in place, although a break above the $5,200 mark per troy ounce still remains elusive on Wednesday. The yellow metal’s rebound comes in response to the persistent flight-to-safety amid intense geopolitical tensions in the Middle East and the bearish performance of the US Dollar.