USD: Strong for JPY and CAD, but weak against GBP - BBH
Analysts at BBH note that the US dollar has advanced against the yen for three consecutive weeks as since April 14 low near JPY108, the greenback rallied 4.6% to test JPY113.00.
Key Quotes
“The JPY112.70 area corresponds with the 61.8% retracement of this year's decline. The measuring objective of the bottom pattern that the dollar carved would be back toward the mid-March high near JPY115.50. Still, the RSI is getting stretched; the Slow Stochastic is poised to cross down, while the MACDs are trending higher. Former resistance, near JPY112, should now offer support.”
“Sterling has gained against the dollar for four weeks and seven of the past eight weeks. The Slow Stochastics and MACDs are about to turn lower, though the price action still looks constructive. The $1.30 area remains within spitting distance, and the $1.3055 is the 38.2% retracement of the decline since the $1.50 level was last seen in June 2016. Of note, the 50-day average is poised to move above the 200-day average. Technicians refer to this as the "Golden Cross" or "Dead Man's Cross ( I suppose depending which side you are on).”
“The US dollar posted a key reversal against the Canadian dollar. The greenback made new highs since February 2016 after the employment data, but then was sold off and closed below the previous day's lows. The first target is near CAD1.3650 and then CAD1.3575. The RSI has turned lower. The Slow Stochastics are set to do so, while the MACD's are leveling out. On the upside the dollar stalled in front of CAD1.38, while the CAD1.3840 is a 61.8% retracement of the greenback's slide since February 2016 high near CAD1.47.”
Author
Sandeep Kanihama
FXStreet Contributor
Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.
