Slobodan Drvenica
Windsor Brokers
USD/JPY
USDJPY hit new multi-decade high above 160 on Wednesday, as bulls regained control after a two-day consolidation.
Fresh probe above psychological 160 barrier suggests that bids remain strong despite warning that Japan’s authorities may intervene to support weakening national currency, with 160 zone seen as a likely trigger.
Strong bids were also signaled by long tails of May / June monthly candles, while dollar remains underpinned by wide gap between monetary policies of Fed and BoJ.
Bulls also ignore overbought conditions on daily chart, with initial bullish signal expected on close above 160 level that would unmask targets at 162.16 /163.38 (Fibo projections) and 164.00 (Oct 1986 high).
Rumors that the Japanese authorities raised the red line for intervention towards 170 zone, may add to fresh bulls to sustain gains above 160.
Initial support lays at 160.00, followed by 159.60 (today’s low / 5DMA) and rising 10 DMA (158.64) which should keep the downside protected.
Res: 161.00; 162.16; 163.38; 164.00.
Sup: 160.00; 159.60; 158.64; 157.70.
Interested in USD/JPY technicals? Check out the key levels
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.
Recommended Content
Editors’ Picks
EUR/USD retreats to 1.0700 area following post-PCE jump
After spiking to a daily high of 1.0720 with the immediate reaction to US PCE inflation data, EUR/USD lost its traction and declined to the 1.0700 area. Investors remain cautious ahead of this weekend's French election and make it difficult for the Euro to gather strength.
GBP/USD stays below 1.2650 after US inflation data
GBP/USD struggles to preserve its bullish momentum and trades below 1.2650 in the American session on Friday. Earlier in the day, the data from the US showed that the annual core PCE inflation declined to 2.6% in May, limiting the USD's upside and helping the pair hold its ground.
Gold keeps its daily gains near $2,330 following US PCE data
Gold prices maintain their constructive bias around $2,330 after US inflation readings gauged by the PCE matched consensus in May and US yields advance slightly across the curve.
BTC struggles around the $62,000 level
Bitcoin price faces pullback resistance at the lower band of the descending wedge around $62,000. Ethereum price finds support at $3,288, the 61.8% Fibonacci retracement level. Ripple price faces resistance at $0.500, its daily resistance level.
French Elections Preview: Euro to suffer after the calm, as specter of extremists, uncertainty rise Premium
The first round of French parliamentary elections is set to trigger high uncertainty. Soothing messages from the far right and far left leave the Euro vulnerable to falls. Calm may return only after the second round of voting on July 7.