The US Dollar held strong against the Yen on Wednesday, thus ending the previous session with an 85-pip gain. The pair was stranded between the 55– and 100-hour SMAs for most of the day. However, a strong hourly surge later in the evening allowed to dash through the latter and test a resistance cluster formed by the monthly S1, the 38.2% Fibo retracement and the 200-hour SMA near 111.70.
It is likely that bulls are reluctant to push past this area during the following session. Meanwhile, the southern side is guarded by the shorter-term moving averages circa 110.85 that are expected to hold firm, at least during the first part of the day. Thus, the Greenback might enter a brief period of consolidation which could be disrupted by US fundamentals released mid-session. In case of a strong fall, the daily low should be 110.20.
It is likely that bulls are reluctant to push past this area during the following session. Meanwhile, the southern side is guarded by the shorter-term moving averages circa 110.85 that are expected to hold firm, at least during the first part of the day. Thus, the Greenback might enter a brief period of consolidation which could be disrupted by US fundamentals released mid-session. In case of a strong fall, the daily low should be 110.20.
Comment:
The bearish sentiment prevailed in the market on Friday. Despite breaching the 100-hour SMA, the US Dollar failed to move below this line, thus remaining in the 110.53/90 area by Monday morning.
As apparent on the chart, the northern barrier is provided by the 200-, 100– and 55-hour SMAs and the weekly PP circa 110.90. It is unlikely that this strong resistance cluster is breached, thus pointing to a possible decline in this session. The daily low could be the monthly S2 and the weekly S1 near the 110.20 mark.
By and large, political events in the United States are expected to be a strong driving force today, and it therefore could cause sudden fluctuations. However, the psychological 111.00 mark should still hold strong.
The bearish sentiment prevailed in the market on Friday. Despite breaching the 100-hour SMA, the US Dollar failed to move below this line, thus remaining in the 110.53/90 area by Monday morning.
As apparent on the chart, the northern barrier is provided by the 200-, 100– and 55-hour SMAs and the weekly PP circa 110.90. It is unlikely that this strong resistance cluster is breached, thus pointing to a possible decline in this session. The daily low could be the monthly S2 and the weekly S1 near the 110.20 mark.
By and large, political events in the United States are expected to be a strong driving force today, and it therefore could cause sudden fluctuations. However, the psychological 111.00 mark should still hold strong.
Comment:
The US Dollar was confidently moving lower against the Yen on Thursday prior to being boosted by Trump’s comments later in the session. As a result, the Greenback strengthened 88 pips and managed to push even higher for several hours after the event.
This bullish sentiment was reversed during the Asian session when downside risks took the upper hand once again. The pair might slide lower within the following hours towards the lower boundary of a five-week descending channel circa 108.40.
However, the US is to release it Advance GDP and Core Durable Goods Orders at 1330GMT that are likely to cause volatility in the market. The southern side is supported solely by the weekly S3 at 108.90, while strong resistance is located near the 110.20 mark.
The US Dollar was confidently moving lower against the Yen on Thursday prior to being boosted by Trump’s comments later in the session. As a result, the Greenback strengthened 88 pips and managed to push even higher for several hours after the event.
This bullish sentiment was reversed during the Asian session when downside risks took the upper hand once again. The pair might slide lower within the following hours towards the lower boundary of a five-week descending channel circa 108.40.
However, the US is to release it Advance GDP and Core Durable Goods Orders at 1330GMT that are likely to cause volatility in the market. The southern side is supported solely by the weekly S3 at 108.90, while strong resistance is located near the 110.20 mark.
Even though the Greenback was tended southwards on Thursday, it remained stranded between the monthly S2 and the 200-, 55– and 100-hour SMAs for the whole session. The pair was testing the 100-hour SMA and the bottom boundary of a short-term channel circa 110.80 at the time of this analysis.
From theoretical point of view, the US Dollar should pick up speed and approach the long-term moving average. This assumption, however, is not supported by technical indicators that suggest a strong decline. This scenario is likely to occur if the 110.80 area is breached. A subsequent fall, however, should not exceed the 110.20 mark where the monthly S2 and the weekly S1 are located.
Meanwhile, the upside target for today is the 11.60 mark.