USD/JPY Price Analysis: Bulls breaking out of bull flag

USD/JPY bulls moving in on critical resistance.
Bull flag playing out in a trilogy on the daily chart.

Ross J Burland FXStreet

As per the prior analysis, USD/JPY Price Analysis: Bears eye a 61.8% golden ratio, USD/JPY moved in on the 61.8% Fibonacci and could now be n the process of making a fresh bull cycle high following last week's bullish weekly close.

Weekly chart

The market is mitigating the imbalance of price from the start of 2002's business. While the weekly rally is relatively overdone and parabolic, a correction may only come should the daily support structure give out.

USD/JPY daily chart

In last week's analysis, USD/JPY Price Analysis: Bullish daily flag breakout is underway, noting the series of bullish flag breakouts, the price has continued to move higher:

(Prior analysis)

The price is up against resistance for the open but a break there for a fresh daily high could encourage the bulls on the way to the 2002 highs in the 134 area.

However, failing a continuation, a break of 130.14 support and the 128.70 could be the trap door for the forthcoming days:

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.

GBP/USD off highs, back to 1.3620

GBP/USD remains slightly on the defensive at the end of the week, receding to the low 1.3600s after hitting fresh tops past 1.3670 earlier in the day. Cable’s correction comes after two daily gains in a row and amid a tepid advance in the Greenback, while poor UK data also accompany the downside.

EUR/USD treads water below 1.1700

EUR/USD now trades with modest losses around 1.1670 following another unsuccessful atempt to advance past 1.1700 the figure in a convincing fashion. The pair’s decline follows a maginal rebound in the US Dollar as market participants continue to assess recent US data as well as developments from the US bond market.

Gold trims gains, recedes to the sub-$4,600 area

Gold rapidly leaves behind Thursday’s inconclusive price action and advances markedly on Friday, briefly surpassing the $4,600 mark per troy ounce to hit three-month peaks. Meanwhile, the precious metal’s solid performance comes despite marginal gains in the buck coupled with another day of rising US Treasury yields across the curve.

Week ahead: Fed’s Jackson Hole and Nvidia earnings to dictate markets

The new Fed chair, Kevin Warsh, has made few public appearances since taking the central bank helm in May, yet he’s found it difficult to steer off controversy. Question marks about his relations with the President, Donald Trump, continue to swirl, while markets are still trying to make sense of his approach to monetary policy.

CFTC Report: Oil positioning rebounds; VIX and Yen exposure turn more bearish

The week in one sentence: Speculative positioning turned more constructive in the week to August 18. WTI recorded the largest increase, followed by a sharp narrowing in CAD net shorts. VIX and JPY positioning moved the other way, while Gold remained the clearest crowded long despite a softer spot price.

$20 billion offered, $2 billion taken: Why Treasury doubled its buyback cap

The US Treasury moved off its own calendar on Wednesday, and that is the part worth sitting with. At 12:32 GMT, the department said it would at least double the size of liquidity support buyback operations in the 10-year to 20-year and 20-year to 30-year sectors, lifting the maximum from $2 billion per operation to at least $4 billion, effective September 9 and running to November 4.