Richard Perry
Independent Analyst
USD/JPY
A strong dollar performance coupled with a decent return of risk appetite later in yesterday’s session has halted a run of negative candles on Dollar/Yen. Interestingly this has enabled the RSI to pick up again around the 40/45 area where lows of recent months have been seen. We have been discussing the support band 108.50/109.00 in recent days and finding support around 108.70 in both of the sessions this week is adding to the prospect of another key low being left. However, the bulls have now only “filled” the gap at 109.15. For a recovery to be on track, this gap needs to be “closed” today with another positive candle. Momentum indicators still look corrective as the MACD and Stochastic slide away. Admittedly, this is within a fairly neutral, oscillating medium term configuration, whilst the MACD decline is also slowing. It suggests the longer the support at 108.70 builds there is a likelihood that this is a chance to buy once more. The hourly RSI moving decisively into the 60s would help improve the outlook. Above 109.20 resistance sits at 109.65/109.70.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
AUD/USD stays defensive below 0.6650 amid China slowdown worries
AUD/USD stays weak below 0.6650 in Asian trading on Tuesday, undermined by mounting worries over China's economic slowdown. The Aussie shrugs off small rate cuts by the PBOC and a subdued US Dollar. Pre-US earnings results caution also weighs on the pair.
USD/JPY extends losses toward 156.00, as risk-off mood returns
USD/JPY accelerates declines toward 156.00 early Tuesday. The Japanese Yen stays bid as risk-off flows return in the Asian session, sustaining the US Dollar weakness-driven downside in the pair. The pair looks to Japanese verbal intervention and mid-tier US data.
Gold price moves away from over one-week low, climbs back above $2,400 mark
Gold price extended its recent corrective slide from the record high touched last week and fell to a more than one-week trough on Monday. US President Joe Biden's withdrawal from the 2024 Presidential election increased the chances of Donald Trump becoming the next US President, raising hopes of a looser regulatory environment.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Bitcoin finds support around the $67,000 level
Bitcoin and Ripple prices are holding steady around their respective weekly and daily support levels, hinting at an imminent rally. Meanwhile, Ethereum is encountering resistance at the $3,530 mark; a decisive close above this level would signal a bullish breakthrough.
Earnings review
In recent years, the focus has been on the Magnificent 7, particularly Nvidia’s monster earnings reports, which have dominated the market. While Nvidia’s results are still extremely important for overall sentiment, there is a hope that sales growth and revenues can pick up across a broad range of global markets and sectors.