Anka is trading at 110.430 as of writing, Price is in the upper channel of the in the AND ABOVE 50, 100 and 200. Rising is still valid. After the breakout of the triangle on Tuesday, pair tested 111.200 but closed the day with a candle. A reversal pattern? Let’s continue.
H4 Chart timeframe, USDJPY tested the 100 support and made 20 pips upside move in Asia session. Below the current level and 100 support, 110.150 MM major support. A few H4 closing below 110.150 , which will be the breakout of the rising as well, may carry the price 109.760, 109.370 and 108.700. H4 closings above 110.570 will carry the price 110.740, 110.900 and 111.130.
The 10-year US-Japan bond yield differential fell to 280 basis points on Tuesday from Monday’s high of 284 basis points which can be a signal fundamentally.
The main trend is still . EURUSD tested MA 200 resistance at 1.16800. A short term sign is the pair succeeded to make a few H4 closings above 50 AND 100. We need to see the price break above MA 200 and MM 7/8 1.16880. Service and Markit Composite PMI data would be a catalyst. Break above 1.16880 might carry the price 1.17180 and 1.17490. However, as the main fundamentals do not give any signals for EURO , I plan to use those possible moves as selling opportunities.
The Brexit is still on the table and can lead to very critical developments this week. Theresa May is changing the tone of the Soft Brexit approach and this may create a big reaction within the party.
On the other side; BOE chief economist Andy Haldene’s vote for rate hike and better macro economic data give positive signals for Sterling.
Short term move is still valid. Cable made a few H4 closings above the 50. A fresh wave may start with the breakout 1.32140. 1.32440 and 1.32700 will be the next targets of GBPUSD if it breaks above 1.32140.