USDJPY

Technical Analysis – USDJPY edges sideways; capped by 50-day SMA

Posted on May 27, 2020 at 7:25 am GMT

USDJPY’s recent obstruction to upside moves seems to be coming from the 107.69 level, that being the 38.2% Fibonacci retracement of the up leg from the 41-month low of 101.17 to the 111.71 high. The pair had drifted into a consolidation period (105.98 – 108.08) that has held for 6-weeks, where price advancements have been restricted by the 50-day simple moving average (SMA). Aiding the struggle to climb higher is the converged 100- and 200-day SMAs, which further dictate a [..]

Daily Market Comment – Recovery hopes pull stocks higher as US-China row put aside

Posted on May 26, 2020 at 8:38 am GMT

Growth optimism drives equities higher as outlook brightens on lockdown easing Dollar slips on risk-on mood, pound and aussie shine But gold supported by lingering US-China tensions Stocks buoyed by economic reopening Global equities extended yesterday’s strong gains with Asian indices adding between 1-3% on Tuesday and European and US futures surging by 2%. The recovery theme continues to support risk assets as more businesses around the world are given the green light to reopen, fuelling hopes of a sustainable [..]

Daily Market Comment – No panic but Hong Kong tensions keep markets on edge

Posted on May 25, 2020 at 8:59 am GMT

US threatens sanctions on China over Hong Kong security bill as tensions simmer But optimism from reopening of economies keeps risk aversion in check Euro and pound on the backfoot again as policy easing and political risks weigh US anger at China mounts; new cold war looming? US-China relations continued to sink to new lows as the US Senate rushed through legislation that would place tougher trading rules on Chinese-listed companies on American stock exchanges and after the White House [..]

Technical Analysis – USDJPY lies near ascending line; bullish profile in short-term

Posted on May 25, 2020 at 6:42 am GMT

USDJPY has been developing near the three-week ascending trend line over the last sessions, finding support at the 23.6% Fibonacci retracement level of the down leg from 111.70 to 105.98 at 107.33. The pair seems to be bullish in the very short-term timeframe and the technical indicators agree with this bias. The RSI, in the positive area, is sloping up, while the stochastic is approaching the overbought territory. In the event of more advances, the 107.82 level could act as [..]

Week Ahead – US-China feud to stay under spotlight as data takes a backseat

Posted on May 22, 2020 at 12:04 pm GMT

Virus recovery hopes have gotten a boost after preliminary PMI readings for May rebounded more strongly than expected, underscoring the market optimism. But with economic releases set to quieten down in the coming week, Washington’s increasingly hostile language against China threatens to upset the dubious risk-on theme. Any panic-driven sell-off in risk assets could be accentuated from another anticipated plunge in personal consumption and durable goods orders in the US, which will be the main data highlights of the next [..]

Daily Market Comment – Hong Kong leads global markets lower as tensions spike

Posted on May 22, 2020 at 9:22 am GMT

Risk aversion deepens as China announces new security laws in Hong Kong Dollar and yen edge higher, global stocks sell off on fears of US retaliation Range breakouts rejected across multiple charts – S&P 500, euro, aussie, loonie Hong Kong sparks worries of new chapter in US-China tensions Global risk appetite crumbled on Friday, after China announced plans to establish an ‘enforcement mechanism’ for ‘safeguarding national security’ in Hong Kong. The news came hot on the heels of legislation to [..]

Daily Market Comment – Nasdaq charges higher, pound feels heat of negative rates

Posted on May 21, 2020 at 10:42 am GMT

Stocks defy economic gravity; Nasdaq closes in on record highs But markets more cautious Thursday, after Trump’s twitter storm vs China Pound rebound falters as BoE Governor doesn’t rule out negative rates Dollar finds its footing ahead of speeches by Fed’s top echelon Nasdaq approaches all-time high, but futures retreat Close your eyes and you wouldn’t know we are in the middle of a deep recession. At least not by looking at the Nasdaq 100 (+2%), which closed less than [..]

Daily Market Comment – Stocks trapped in ‘no man’s land’, but yen slides

Posted on May 20, 2020 at 9:15 am GMT

Equities pull back as vaccine doubts set in, still stuck in a range Yet broader FX market in a ‘risk on’ mood, yen bruised by BoJ news Bank of England speakers in focus today ahead of Fed minutes Markets look for another catalyst as vaccine rally falters The vaccine-powered euphoria that propelled stocks higher at the start of the week gave way to skepticism on Tuesday, as reports blasted the lack of data in Moderna’s vaccine study, stressing that the [..]

Technical Analysis – USDJPY tests key resistance for more upside moves

Posted on May 20, 2020 at 7:44 am GMT

USDJPY controlled by the 20- and 50-day simple moving averages (SMAs) the past few sessions is pushing for another soft green week that could see a test of the 108.50 barrier if the bulls manage to successfully breach the 50-day SMA and resistance around 107.97– being the 61.8% Fibonacci of the down leg with a top at 112.21 and a low at 101.17. According to the momentum indicators, another upside correction is possible as the RSI and the MACD are [..]

US flash PMIs may bring glimmer of hope as Fed minutes likely to be downcast – Forex News Preview

Posted on May 19, 2020 at 11:49 am GMT

Federal Reserve chief Jerome Powell has had a busy public speaking week and his schedule will remain busy as he testifies before Congress on Tuesday and participates in a ‘Fed Listens’ event on Thursday. The minutes of the April 28-29 FOMC meeting are also due this week (Wednesday, 18:00 GMT) and policymakers will likely strike a downbeat tone amid warnings of a slow recovery. However, with markets seeking any excuse – the latest being the Moderna vaccine trial – to [..]

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