USDJPY

Technical Analysis – USDJPY rises in broader bearish outlook

Posted on December 21, 2020 at 10:52 am GMT

USDJPY found significant support at the nine-month low of 102.85 on Thursday, taking the price above the 20- and 40-period simple moving averages (SMAs). The technical indicators are supporting the latest upside move as the RSI jumped above the 50 level, strengthening its momentum, while the MACD is trying to surpass the zero level. Immediate resistance could come from the 38.2% Fibonacci retracement level of the downward wave from 105.65 to 102.85 at 103.93. Overcoming this obstacle, the next target [..]

Daily Market Comment – Dollar edges up amid the wait for elusive stimulus and Brexit deals

Posted on December 18, 2020 at 10:01 am GMT

Dollar selling eases as caution creeps in, but still set for big weekly losses The long wait for deals in Washington and Brussels takes edge off risk rally Stocks mixed, some volatility may lie ahead Dollar bears pause for breath as Congress in race against time The US dollar was attempting to end its week-long losing streak on Friday as doubts about how soon a stimulus deal in Congress and a Brexit trade pact between the UK and EU can [..]

Bank of Japan to continue current path – Forex News Preview

Posted on December 17, 2020 at 4:30 pm GMT

The Bank of Japan will announce its last policy decision for 2020 early on Friday at 03:00 GMT, and the consensus is for the central bank to hold policy unchanged but extend existing funding schemes for pandemic-hit companies. No need for drastic measures Japan’s Cabinet, for its part, submitted a third extra spending bill of $200 billion this week for parliamentary approval, topping the new stimulus package to above $700 billion as a third, more deadly wave of infections pushed [..]

Technical Analysis – USDJPY points to November’s lows; bias neutral-to-bearish

Posted on December 16, 2020 at 7:21 am GMT

USDJPY lost the battle with the 104.00 level and the 20-day simple moving average (SMA) on Tuesday, with the price sliding back into the 103.00 area and closer to the eight-month low of 103.16 registered in November. Despite the pullback, the pair has not significantly violated the bottom of the 104.75 – 103.65 range area nor the 78.6% Fibonacci of the 101.17 – 111.70 upleg. Also, the RSI and the MACD, although within their bearish zones, keep fluctuating between familiar [..]

Technical Analysis – USDJPY pulls back to familiar support zone; bias negative

Posted on December 14, 2020 at 11:33 am GMT

USDJPY bears set a trap around the 104.00 level early on Monday, pressing the price towards the familiar 103.70 – 103.64 support area. The technical picture endorses the descent in the price as the RSI heads towards its 30 oversold level, the stochastics are reversing south and the MACD strengthens its negative momentum below its signal and zero lines. Yet, the 103.70 – 103.64 zone has been quite defensive to bearish actions since mid-November and whether it would abandon its [..]

Daily Market Comment – Pound jumps as Brexit deadline extended yet again

Posted on December 14, 2020 at 9:47 am GMT

Pound soars after Britain and the EU agree to continue talking Progress in US stimulus talks also lifts markets’ spirits, dollar sags But cause for caution ahead of Fed meeting, stocks up modestly UK and EU agree to go “extra mile” to get a deal After a bruising week, sterling was once again riding high on renewed optimism for a post-Brexit trade deal on Monday. UK Prime Minister Boris Johnson and European Commission President Ursula von der Leyen had set [..]

Daily Market Comment – Can the ECB muster enough firepower to sink the euro?

Posted on December 10, 2020 at 10:06 am GMT

ECB decision the main event today, can policymakers over-deliver? Stock markets retreat from record highs as US stimulus talks stall Pound drops after top-level Brexit meeting yields no breakthrough Gold under pressure too, yet aussie dollar defies cautious mood ECB preview: Sinking the euro won’t be easy The spotlight will fall on the European Central Bank today, which is widely expected to deliver another easing package of around €500bn, likely complemented by more ultra-generous loans to banks. The bad news [..]

Technical Analysis – USDJPY neutral-to-bearish under SMAs and trend line

Posted on December 9, 2020 at 8:33 am GMT

USDJPY is tackling the mid-Bollinger band at 104.31 as a sideways move confines the pair between the 103.65 level, which happens to be the 76.4% Fibonacci retracement of the up leg from 101.17 to 111.71, and the 104.75 highs. Nonetheless, the simple moving averages (SMAs) continue to exhibit the broader negative bias. The short-term oscillators are reflecting slight improvements in positive momentum with the MACD, in the negative region, creeping above the red trigger line, while the gradual hike in [..]

Daily Market Comment – Investors on alert as California shuts down, gold glitters

Posted on December 8, 2020 at 10:28 am GMT

Markets revert to old pandemic playbook amid new US restrictions Nasdaq hits new highs, but other stock indices drop alongside oil Gold stages heroic comeback, bigger picture still encouraging Sterling on the back foot as PM Johnson heads to Brussels Big tech shines as pandemic concerns resurface A sense of caution has crept back into global markets, as investors try to balance the prospect of more government stimulus and central bank liquidity against the grim pandemic reality, with California announcing [..]

Technical Analysis – USDJPY although consolidates, still favours downside

Posted on December 7, 2020 at 2:47 pm GMT

USDJPY is plunging below the 104.19 level, which is the current vicinity of the mid-Bollinger band, the 50- and 100-period simple moving averages (SMAs). The pair is weakening within a mini-sideways market with a lower bound of 103.65-103.73 and a higher bound of 104.75. All SMAs still possess their bearish tone, which is assisting the downwards trajectory. The short-term oscillators are suggesting that downside momentum is growing. The MACD, in the negative region, looks set to dip back below its [..]

Legal disclaimer: The material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instruments. XM accepts no responsibility for any use that may be made of these comments and for any consequences resulting in it. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. The research and analysis does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it.

It has not been prepared in accordance with legal requirements designed to promote the independence of research, and as such it is considered to be marketing communication. Although we are not specifically constrained from dealing ahead of the publication of our research, we do not seek to take advantage of it before we provide it to our clients. We aim to establish, maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. We operate a policy of independence, which requires our employees to act in our clients’ best interests and to disregard any conflicts of interest in providing our services.

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losing all of your invested capital, so please make sure that you fully understand the risks involved.