The tide has turned on USD/JPY as the pair trades sharply below its 52-week Moving Average. Said moving average has been a strong marker of trends in the USD/JPY for the past two decades, and staying below the 52W SMA keeps our focus lower.
Dollar seems to be on pace for further losses. There's a lot of noise surrounding Greece, but my favored USD-shorts remain the Euro, Sterling, and Japanese Yen (as per yesterday's report: http://www.dailyfx.com/forex/technical/ssi/table/2015/06/18/ssi_table_story.html?CMP=SFS-70160000000NbT3AAK
This chart highlights the implied volatility range from Euro/US Dollar FX Options pricing ahead of critical European Finance Ministers meeting as well as the highly-anticipated US Federal Open Market Committee interest rate decision.
Data source: Bloomberg Professional Service
Calculations: David Rodriguez of ...
The Australian Dollar has bounced, but $0.7800 remains significant volume-based resistance (https://twitter.com/DRodriguezFX/status/608641706720899072/photo/1 ) as well as a key Fibonacci level and previous reaction-high. Our bias remains bearish below.
The technical picture looks constructive on the USDOLLAR, but how it reacts at former reaction highs/congestion near 11950 will likely determine short-term direction. Thus far it continues to hold, and staying above keeps our eyes on the 12,000 mark.
The USDJPY looks to be finally breaking out of its range. I wrote about my trade preferences here: http://www.dailyfx.com/forex/analyst_picks/todays_picks/david_rodriguez/2015/05/27/forex-trading-US-Dollar-versus-Japanese-Yen.html . Put simply, when the USDJPY goes it really goes. Given the overall uptrend I think ...