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Technical Analysis – GBPJPY downward bias

Posted on August 26, 2014 at 9:49 am GMT

GBPJPY has begun a downtrend after peaking at a more-than-5-year high of 175.34 on July 3. Prices have formed lower highs and lower lows, trading below the downtrend line. The market is capped by the lower Ichimoku cloud and resistance at the August 7 high of 172.60. Support is provided by the 200-day moving average at 170.41. Near-term support is seen at 171.60, the August 22 low. RSI has just crossed below the 50 line and MACD is negative, implying [..]

Technical Analysis – EURUSD targets 1.3100

Posted on August 26, 2014 at 6:57 am GMT

EURUSD extended lower to reach a new 1-year trough of 1.3178. The trend remains bearish within a downward channel. Prices are below the daily Ichimoku cloud and the tenkan-sen and kijun-sen lines are strongly negative, keeping the underlying bearish market structure. RSI and the stochastic are oversold, signaling some weakening in the downward momentum and a pause for now. There is scope for further losses towards the key psychological level of 1.3100. To the upside, resistance is seen at 1.3233. [..]

Asian Session – Dollar rally pauses because of fears greenback is overbought

Posted on August 26, 2014 at 6:43 am GMT

The lack of fresh bullish news caused what appeared to be an overextended dollar rally, to take a breath during the Asian trading session. The yen was the main beneficiary of the retracement of the dollar, as dollar / yen technical indicators signaled overbought conditions. In addition, the fundamental catalyst for the yen’s decline was not as clear as in the case of the euro as Kuroda more or less repeated his well-rehearsed lines in Jackson Hole in contrast to [..]

European Session –German data and Draghi undermine euro

Posted on August 25, 2014 at 1:57 pm GMT

The euro hovered at near 1-year lows against the dollar after coming under pressure by European Central Bank Chief’s dovish comments on Friday at the Jackson Hole Symposium. Mario Draghi signaled that inflation in the Eurozone had dropped to levels that would open the door to more policy action by the ECB, which would include more quantitative easing. These comments dented sentiment in the euro which fell to an 11-month low of 1.3184 on Friday. The bearish bias on the [..]

Forex News – Yellen, Draghi and Kuroda guide US dollar higher in Jackson Hole

Posted on August 25, 2014 at 1:37 pm GMT

The annual monetary policy symposium in Jackson Hole, Wyoming, hosted by the Kansas Federal Reserve, is a chance for the world’s leading monetary policymakers to exchange views in an idyllic setting as well as to float some ideas about future policy. The most keenly awaited speech was the one by Fed Chair Janet Yellen. However, Yellen’s speech did not contain a lot surprises. Yellen acknowledged the improvement in the US economy and labor market, but also cited a whole host [..]

Technical Analysis – USDJPY bulls return

Posted on August 25, 2014 at 6:50 am GMT

USDJPY rallied strongly to a new 8-month high of 104.26. The market has turned bullish after breaking above the June 30 high of 103.07. The tenkan-sen and kijun-sen lines are positively aligned, highlighting the underlying upside potential. Prices are trading above the daily Ichimoku cloud and above the 200-day moving average which reinforces the bullish bias. Technical indicators such as RSI and MACD also signal bullishness. To the downside 103.07 is seen as a strong support level. USDJPY has scope [..]

Asian Session – Dollar hits new high versus euro after Jackson Hole speeches by Yellen and Draghi

Posted on August 25, 2014 at 6:41 am GMT

The dollar rallied to fresh 11-month highs against the euro and to 8-month highs against the Japanese yen, as Fed Chair Janet Yellen reaffirmed the widely held belief that US interest rates would gradually rise during 2015. In contrast, the Bank of Japan seems to be on hold for the foreseeable future, while the European Central Bank stood ready for additional easing in order to ensure “price stability” according to the ECB chief. Lower-than-expected inflation has been a problem that [..]

Forex News – Week Ahead: String of US data to watch for

Posted on August 22, 2014 at 2:48 pm GMT

After this week’s highlight event at Jackson Hole, the markets’ focus next week will remain on the United States where a series of important data will be released, including growth numbers. On Monday, the US will release Commerce Department will releases figures for new home sales, which are forecast to show a rebound in July. On Tuesday, durable goods orders are due. Thursday will be important as the second estimate of gross domestic product (GDP) for the three-month period will [..]

European Session – Dollar eases on caution ahead of Yellen

Posted on August 22, 2014 at 1:34 pm GMT

All eyes are on Federal Reserve Chair Janet Yellen’s keynote speech later today at the Jackson Hole Symposium of central bankers. European Central Bank Chief Mario Draghi also due to speak at the gathering. Due to such key risk events, market participants preferred to wait on the sidelines and were unwilling to enter new positions. This kept currency markets calm today, with little movement. A lack of other economic data releases also kept flows to the minimum. There were some [..]

Technical Analysis – EURJPY breaks out of bearish channel

Posted on August 22, 2014 at 7:56 am GMT

EURJPY closed above the downward channel on Thursday, giving a promising outlook and may signal the recent downtrend has weakened. The positive alignment of the tenkan-sen and kijun-sen lines on the daily chart highlights the upside potential. RSI is in bearish territory above 50. The daily Ichimoku cloud is acting as resistance to the upside at 138.00. A break into the cloud will lead EURJPY towards 138.66 which is the 38.2% Fibonacci retracement level of the 143.46-135.71 downleg. Support is [..]

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