Daily Market Analysis from ForexMart

[Andrea ForexMart]

NZD/USD Technical Analysis: October 10, 2016

 

The NZD/USD pair had unchanged rates during the last session at 0.7168 points with a possibility of daily lows at 0.7149 points. The NZD/USD is expected to slow down in spite of a diminishing trade activity surrounding the USD, and the negative impact of lowered oil prices to the NZD.

 

The financial market in general has also moved towards the sidelines as different market players are now closely monitoring the second US presidential debate. The US market holiday is also expected to further cause stagnation in this particular currency pair.

 

Investors are now awaiting a series of statements to be released by the Federal Reserve, as well as Chinese trading data and CPI data which are all due within this week. These data are all expected to have an impact on the NZD/USD pair.

 

The resistance levels for the NZD/USD is currently at 0.7207 at the 100-DMA, with a significant possibility of a gain extension at 0.7521 at the 20-DMA. From there, the pair could possibly extend its range at 0.7275 at the 50-DMA. On the other hand, the pair’s current support levels is located at its two-month low of 0.7110, with a possibility of lowering at 0.7084 and 0.7064 points.

 

[Andrea ForexMart]

GBP/USD Technical Analysis: October 11, 2016

 

The GBP/USD pair dropped from its peak of 1.2440 points and has now recorded a new low during the New York trading session. The pair is now trading within the 1.2360 range and its slight recovery during the earlier part of the London session caused the GBP/USD to retain its downward direction in the middle of little market volatility.

 

The direction of the currency pair was driven by the movement of the USD due to lack of any relevant economic data released during the last trading session. The USD movement has recently been benefitting from an ease in risk aversion following the results of the US Presidential Debate. On the other hand, the sterling pound is experiencing downward pressures due to post-Brexit uncertainties, causing the GBP to decrease further during the last trading session.

 

The 4-hour chart for the currency pair shows that the GBP/USD is starting to bounce back from Friday’s sudden decline even though technical indicators are still a long way from fully recovering. The 20-SMA has also decreased further and is now at 1.2560. The pair reached 1.2476 points, its highest point reached after its most recent decline. The GBP/USD must go beyond this range and reach up to 1.2520 and 1.2600 in case the USD succumbs to selling pressure.

 

[Andrea ForexMart]

AUD/USD Technical Analysis: October 11, 2016

 

The AUD/USD pair’s 50-MA level for the recent trading session reached the 0.7608 trading range, with trades now at 0.7590 in spite of the widening of the 10-year yield spread for AU-US. High yielders further reaped benefits during the second quarter of yields in the international market. The 10-year yields for Australia increased by 7 bps while the 10-year US yields increased by 3 bps.

 

Analysts are stating these higher yields could have negative impacts on all aspects of the risk spectrum since this could lead to a drop in high-yielding currencies such as the NZD.

 

Should the AUD/USD recover, then the bid tone recovery could go up into the resistance level of 0.7608 for the 50-DMA and could possibly go further up to 0.7626 for the 10-DMA. However, if the previous support levels of 0.7580 would be reached by the pair, then this could lead to a possible drop to 0.7553, with sell-offs further extending to 0.7526 which is the 100-DMA level for the GBP/USD pair.

 

[Andrea ForexMart]

NZD/USD Technical Analysis: October 11, 2016

 

The NZD/USD weakened during the last trading session after the USD regained some of its lost value, with the demand now testing within  the 0.71 range. The USD remained sturdy throughout the Asian trading session due to the US treasury yields increase caused by rising oil prices. This also heightened the possibility of an interest rate hike this coming December, along with an exhaustion on the part of central banks and a deepening of the yield curve on the international market.

 

The currency pair is now dependent on the market sentiment, particularly now that the Reserve Bank of New Zealand’s Assistant Governor is set to deliver a statement with regards to the country’s low inflation rates.

 

Since the NZD/USD is already trading lower than the 50-DMA and 100-DMA levels, an acceptance rate lower than 0.71 might have a significant impact on the bulls. Should the currency pair break through the support levels of 0.7049, then this could possibly reveal the 0.70 handle. On the other hand, an increase from Friday’s low of 0.7110 might lead to a steeper retracement level to 0.7155 for the 100-DMA and 0.7204 for the 10-DMA.

[Andrea ForexMart]

AUD/USD Technical Analysis: October 13, 2016

 

The Aussie further improved its strength after the price of petroleum products had increased also. Consequent on the testing of its lowest low last 20th of September, the AUDUSD made a sudden upturn in the midst of Asian session held on Wednesday. Last Tuesday, the commodity currency easily regains its previous deficit. Seeing the bullish spike procured a brief momentum only, it made the AUD and USD to stand in a constrained area. While in the beginning of the NY  meeting the price deal with value depreciation.

 

The moving averages shore up over the upward momentum while it persist to slowed down and manifested a bearish slope. The 50-EMA intervenes the 100 and 200-EMAs then proceeded to a lower position. Resistance step in the 0.7600 level, support captured the 0.7540 region. MACD had softened but uphold strength for the sellers then ended up in the negative zone. The RSI oscillator grow less. The Australian and U.S dollar remained to be bearish.

 

[Andrea ForexMart]

USD/CAD Technical Analysis: October 14, 2016

 

The Canadian dollar inched higher than the USD during the last trading session in the light of the impending US retail sales data to be released on Friday. The risk appetite for the currency pair dropped due to a slowdown of the Chinese economy, with the nation’s exports contracting 10% annually and imports sinking by 2% in spite of a drop in commodity prices.

 

Oil prices rose due to the weakening of the USD and an offset in crude stocks due to drawbacks from inventories in refined products. Meanwhile, Canadian house prices increased by 0.2% last August, while prices of real estates are now under close monitoring due to an increase in household debt fuelled by lower interest rates, which might become unsustainable for the Canadian economy.

 

Meanwhile, the Canada-EU Trade deal has already passed another test after the German court denied a petition to block the said agreement. EU Ministers will be having a meeting next week with an aim to discuss this particular deal following concerns that the Belgian opposition might attempt to block the said deal due to the possibility of farm imports overshadowing local farm production.

 

[Andrea ForexMart]

USD/JPY Technical Analysis: October 14, 2016

 

The USD/JPY pair is at steady in an uptrend channel for short-term. Nevertheless, the Yen  strengthened against greenback despite the weak economy of China.

 

The price increase for a while but it declined again lower than 104.00 level. It is expected to go lower but the tension dwindled when it reached the 103.50 level. The price bounce back and the traders were able to recover some losses. Henceforth, the pair is trying to gain its momentum back to 104.00 level. The Resistance level  is at 104.00 while the Support level is at 103.00 .

 

In the Moving Averages chart, the prices are at a high level as it continues the Bullish trend. The MACD is within the positive territory but the histogram declined implying the frail command of buyers. The RSI is also moving downward. It is expected for the physiological level to hold at 104.00 level followed by a decline to 103.00 level.

 

[Andrea ForexMart]

EUR/JPY Technical Analysis: October 18, 2016

 

The EUR/JPY pair has recently experienced a trading high of 116.30, a long shot from September’s monthly low of 112.00 points. The currency pair backtracked from the Fibonacci levels of 23.6 and 38.2 last week after support levels went up to 1114.00-114.12 due to the 20-50 DMA, as well as the Fibonacci levels of 50.0. A breach beyond this level might cause a drop at 113.00 and 112.00, which is in line with the weekly and monthly time frames for the currency pair.

 

The EUR will be reliant on this coming Thursday’s events, with the European Central Bank seemingly uncertain on whether to increase stimulus to an already expanded policy due to increasing inflation rates and an increase in momentum levels as suggested by growth indicators. However, the ECB still has to remedy the decrease in supply as a means to keep its current program in line and make way for another program, albeit at a reduced level.

 

Market players are expecting a particularly uneventful ECB statement due to speculations of an unchanged policy and ECB merely repeating its calls for politicians to improve structural reforms in order to boost economic growth in the European Union and to increase inflation in the region.

 

[Andrea ForexMart]

USD/JPY Technical Analysis: October 19, 2016

 

The USD/JPY pair is currently trading at 103.87 points, increasing by 0.01% during the last trading session after a high of 103.98 and a daily low of 103.80 points. The Asian trading session exhibited an ambiguous trading activity while the market waits for the release of the Chinese GDP data for the third quarter of the year. The USD is currently on the uncertain side while the USD/JPY was able to retain its stance in the positive territory in spite of rallying from the 100 handle in September.

 

However, this ambiguity of the pair can be remedied by the oil bulls, since this can be used as a means to measure risk appetite and market demand. So far, oil has been moving on an impressive note recently, with the AUD/JPY pair having a positive bid on its 4-hour chart from the handle of 76-80.

 

Although the currency pair is trading on the positive side, analysts are speculating that going above the 104.63 means that this could possibly target the monthly low in May at 105.55 points. Since the pair is currently trading at 103.88 points, then the next resistance point is at the 103.91 range of the 20 EMA, 103.98 range of the 100 SMA and the daily high. Meanwhile, support levels is expected to be at the 103.87 range and could also possibly drop to the 200 SMA of 103.80.

 

[Andrea ForexMart]

AUD/USD Technical Analysis: October 19. 2016

 

The AUD/USD pair was able to maintain its hold on the upper range of the 0.76 handle after AUD bulls were unimpressed with the expectations coming from the impending release of the Chinese GDP data. The currency pair is now trading at 0.7672 points after increasing by +0.07%. The AUD streamlined its gains after consecutive macro releases from China, which caused an uncertain outlook for the Chinese economy and curbed a possible catalyst for the AUD, especially since China is one of Australia’s main export destinations.

 

In spite of this, the AUD/USD has still managed to maintain its current bids after sentiment levels remain supported by recent oil prices. The positive data from the Australian Westpac Index also improved support for the AUD in spite of the weakness exhibited by the USD. After the release of the Chinese GDP data, investors are now waiting for the releases of the US housing data, as well as inventory reports on the EIA crude oil, which will be released during the New York session.

 

The resistance levels for the AUD/USD is currently at 0.7693, and gains could further extend to 0.7707 and 0.7750. On the other hand, support levels for the pair is currently located at the 0.7637 range for the 5-DMA. If selling pressure for the pair manages to increase, then the pair would drop further to 0.7576 for the 100-DMA and 0.7511 at the 200-DMA.

 

[Andrea ForexMart]

AUD/NZD Technical Analysis: October 20, 2016

 

The AUD/NZD pair is currently trading at 1.0624 after dropping by -0.50% during the last session with a session high of 1.0696 points and a session low of 1.0613. The currency pair has decreased significantly following a negative Australian market report release, and the Reserve Bank of Australia is now considering ways on how to further stimulate economic factors for the nation.

 

The currency pair plummeted from 1.0696 to 1.0612 on the hourly chart, with the AUD exhibiting remarkable resiliency in the recent bulls in the market. The NZD and AUD are both exceeding expectations and gaining significant profits especially now that the market is primarily driven by oil prices.

 

Since the currency pair is at the 1.0624 region, resistance levels is expected to be at the last session low of 1.0626, 1.0633, and 1.0667 for the hourly EMA. Meanwhile, support levels are expected to be at the daily S1 of 1.0621, its daily low of 1.0613, and the daily 20-SMA of 1.0594.

 

[Andrea ForexMart]

GBP/USD Technical Analysis: October 20, 2016

 

The GBP/USD pair closed the last trading session with a minimal decrease in its value after closing the session at 1.2260 points after reaching a weekly high of 1.2332 points, which was due to the release of the UK employment data. The employment data showed that the number of employed people in the UK increased up to 106,000 from June to August 2016, although the unemployment rate maintained its previous stance at 4.9%. On the other hand, the data for wages exceeded market expectations after  surging to 2.3% excluding bonuses.

 

However, in spite of the fairly positive jobs data which is expected to persist until the following months, investors and traders are expressing concerns with regards to the possible divergence in inflation rates and salary increases, which might create market problems in the long run.

 

The resistance levels for the currency pair retreated significantly in the 4-hour chart. The resistance levels moved back from the 1.2320-1.2330 range, while other technical indicators are also reverting back from their previous values but still manages to remain in the positive side of the chart. If the pair breaks below 1.2230, then the pair is most likely to drop further into the 1.21 trading range.

 

[Andrea ForexMart]

USD/JPY Technical Analysis: October 21, 2016

 

The USD/JPY pair is currently trading at 104.13 points after increasing by 0.18% during the last session and has recorded a session high of 104.18 and a session low of 103.91 points. The currency pair is already losing its Asian session bid after the USD finally regained some of its lost value. The Bank of Japan’s Sakura Regional Economic Report has expressed possibilities of the yen increasing its pressure and has decreased the economic assessment for the Tokai region.

 

Analysts are noting how the USD/JPY pair has remained stable all throughout the yield curve control set by the Bank of Japan, with all major Japanese markets such as JPY yields, Nikkei stock index and the USD/JPY experiencing relatively low volatility during the past trading sessions. The lower range for the USD/JPY pair might also be supported by the simultaneous selling off by Japan-based investors.

 

Since the current trading value for the USD/JPY is at 104.13 points, resistance levels are expected to be at 104.18 points and 104.20 points. Meanwhile, support levels are expected to come in at the 104.14 range and 104.12 and could possibly drop further to 103.89.

 

[Andrea ForexMart]

GBP/USD Technical Analysis: October 21, 2016

 

The GBP/USD pair closed down the last trading session with little activity after the pair was unable to break through a large-scale resistance at the 1.2330 region. The sterling pound suffered during the first part of the London trading session after the release of retail sales data for September turned out to be a major disappointment for investors and traders. The initial demand for the EUR/GBP also increased significantly due to a reaction from investors after the release of the ECB’s statement, causing the GBP/USD to further plummet to a daily basis of 1.2209 points. However, the pair was able to revert back to its present value of 1.2260 during the New York session.

 

The general risk for the GBP/USD is currently leaning towards the negative territory, especially if the currency pair fails to go back to the 1.2300 region. The 4-hour chart for the currency pair is exhibiting a bearish-neutral stance, with the pair’s momentum possibly going over the downside with a significant downward curve.

 

Meanwhile, the pair’s RSI levels could possibly consolidate at 48 and the price could hit the 20 SMA. The currency pair might decline further to the 1.2100 trading range if selling interest gets reverted below the pair’s daily lows.

 

[Andrea ForexMart]

GBP/USD Technical Analysis: October 25, 2016

 

The GBP/USD pair lost some of its footing during the last trading session and has settled within the 1.2200 region. The sterling pound experienced ambiguity after the release of the UK CBI Industrial data showed a drop in manufacturing orders for October and manufacturing output increasing in the previous quarter and volume levels for export reaching its highest levels in over two years as a result of a weakening in the GBP.

 

The market is expecting that the GBP will be subject to even more pressure due to the uncertainties surrounding the UK amid Theresa May’s Brexit strategies which were subject to questions and concerns from various lawmakers in the UK government. The GBP/USD generally maintains a neutral-bearish stance in its 4-hour chart, with a somewhat bearish 20 SMA and an absence of directional strength in the pair’s technical indicators in the negative side of the chart. Current support levels for the currency pair is at 1.2170, and analysts are expecting a bearish extension if the pair manages to go even lower than the indicated support level.

 

[Andrea ForexMart]

GBP/USD Technical Analysis: October 27, 2016

 

The GBP/USD was able to revert back from its losses during the previous trading day after the cable pair dropped down to its lowest levels since the Brexit referendum was announced. The currency pair fell by up to 150 pips during Tuesday’s trading session and hit 1.2081 points before reaching support levels. The currency pair was then able to recover some of its lost value and has recently had a session high of 1.2243 points. The pair was last seen trading at around 1.2225 points.

 

On the other hand, the expected US economic data came out as very ambiguous, after Services PMI data increased by 54.8 points for October, going above the expected 52.3 range. US home sales data surged by up to 3.1% for September and had a seasonal yearly rate of 593,000 after failing to reach the expected range of 600,000.

 

Support levels for the GBP/USD are expected to be at 1.2081 and 1.2000, while resistance levels are expected to be around the region of 1.2259 and 1.2297 points.

 

[Andrea ForexMart]

USD/CAD Technical Analysis: October 28, 2016

 

The CAD experienced a drop in relation to the USD after dovish statements from the Bank of Canada last week plus corrections in crude oil prices put downward pressure on the CAD. The USD/CAD pair was able to maintain its bullish stance during Thursday’s trading session, with the pair remaining at the 1.3400 region, which is the pair’s current critical range. However, the pricing for the currency pair was able to drop slightly prior to the opening of the New York session.

 

The USD/CAD was able to go over its current moving averages after its 50-EMA provided ample support for the currency’s price in the daily chart. However, the pair is seen to have probable difficulties with regards to moving lower from the 50-EMA. The moving averages for the currency pair are generally higher, and analysts are expecting resistance levels to be at 1.3400 points while support levels are expected to be at 1.3300.

 

The MACD indicators for the USD/CAD pair is still consolidating within its levels, while the RSI remains at the overvalued trading range. Analysts are expecting that if the pair manages to go break through the 1.3400 region, then the USD will be able to have more profits upon reaching the 1.3470 range. On the other hand, if the pair drops and hits the 1.3300, then the market is advised to look at the trading range of 1.3250.

 

[Andrea ForexMart]

USD/JPY Technical Analysis: October 28, 2016

 

The USD was able to maintain its three-month price advantage against the JPY after a positive US Treasury yields data and growing positive expectations with regards to the Fed rate hike in December. Thursday’s session saw the USD increase further in relation to the Japanese yen, with the USD/JPY bouncing back from its previous losses during the last trading session.

 

The pricing for the pair remained on the positive territory and was able to reach the 105.00 range during the rest of the trading session. The currency pair was able to go beyond its current moving averages and is currently pointing on  the higher side of its hourly chart. Support levels for the currency pair is at 104.50, while resistance levels are set at 105.00.

 

The MACD indicators for the pair is expected to increase, while the RSI indicator for the pair is currently consolidating within its overbought trading range. The USD/JPY pair will have to maintain its value above 104.50 points in order to retain its bullish stance and create more gains for the pair. Meanwhile, if the pair closes down the trading session at 104.50, then the pair is expected to go even lower at 104.00 points.

[Andrea ForexMart]

GBP/USD Technical Analysis: October 28, 2016

 

The sterling pound was able to acquire some measure of support following the release of a highly positive GDP report for the region. The GBP has now significantly increased in value. However, further profits for the sterling pound was restrained after the USD was able to recover its previous losses.

 

The GBP/USD remained a few points away from its current support level of 1.2200 during Thursday’s session, with its most recent reversion stalling within the 1.2150 range which caused the pair’s price rate to drop. Meanwhile, the GBP stayed within the 1.2200 range and increased in value during the London session, but the GBP/USD pair slightly weakened during the New York session. The GBP reverted from the 50-EMA within the 1.2200 range and was able to break through the 200-EMA in its hourly chart. The 200 EMA is is exhibiting a downward trend, while the 50 and 100 EMA is currently at the neutral territory. Resistance levels for the GBP/USD is at 1.2300, while support levels for the pair are expected to be at 1.2200.

 

The MACD technical indicator for the pair is currently at the middle, and an increase in buyer strength is expected once the histogram indicator moves to the positive side of the chart. However, once the MACD enters the negative side, then this will signal a market takeover by sellers. If the sterling continues to weaken, then the GBP/USD pair is expected to go below 1.2200, wherein sellers are expected to move the currency’s value further into 1.2100. On the other hand, the downward pressure on the sterling might be lessened if the pair goes beyond the 1.2300 range.

[Andrea ForexMart]

EUR/USD Technical Analysis: November 02, 2016

 

The EUR/USD pair increased up to 1.1068, its highest level reached in 3 weeks after the dollar traded significantly lower after the results of the US Presidential poll showed that Trump went one point higher than Clinton with regards to voters’ intentions. Meanwhile, US macroeconomic releases came out on a positive note after the Markit PMI data for October came out at 53.4, its highest data release for 2016.

 

In spite of positive US data which strengthens the possibility of an interest rate hike in December, the USD is still in danger of dropping in value during the Tokyo session due to the negative market sentiment with regards to the US dollar. The 4-hour chart for the currency pair exhibits high overbought rates for the technical indicators even though the EUR/USD had a bare minimum of additional 100 pips on a daily basis, which is also an indicator that there is a possibility that the EUR/USD could gain more profit.

 

The EUR/USD will have to go above its daily highs in order to incur more gains since this is the 50% retracements of its most recent drop in value. The movement of the EUR/USD is expected to slow down during the Tokyo session prior to the FOMC meeting which will determine whether the USD will be able to sustain its current bearish stance.

 

 

[Andrea ForexMart]

GBP/USD Technical Analysis: November 02, 2016

 

The GBP/USD pair increased up to 1.2280 points but immediately reverted back to 1.2200 points before closing the previous trading session at 1.2230 points. The momentum of the GBP slowed down after the release of the UK Markit manufacturing PMI data for October which plummeted to 54.3 points from its previous reading of 55.5 points. Market speculators are waiting for the results of the Bank of England’s Thursday meeting even though the BoE is not expected to make adjustments to its monetary policies as of the moment.

 

However, BoE governor Mark Carney relieved the market on Monday after announcing that the governor will be serving another term in order to help the bank’s economic policies adjust to the effects of Brexit. The technical indicators for the pair have maintained their neutral bearings with the 20 SMA now at 1.2200 and other indicators seen at the positive territory but lacking decisive directional strength.

 

Market players are advised to monitor the 1.2335 region on the upward territory and its support levels at 1.2170 points since the pair will have to break through any of these levels in order to gain significant directional momentum.

[Andrea ForexMart]

USD/JPY Technical Analysis: November 3, 2016

 

The USD continues to be subject to downward pressure during Wednesday’s trading session due to uncertainties brought about by the upcoming US Presidential elections next week. The USD/JPY pair was unable to maintain its previous levels of 105.00 after a heavy seller resistance within this particular region, causing the currency pair to lose some of its value. Wednesday’s trading session saw the pair remain in the negative territory as the downward momentum for the currency pair continued. Seller pressure also pushed the USD/JPY further below 104.00 and is now approaching the 103.00 trading range.

 

The USD/JPY pair broke through 103.50 and is well on its way to 103.00. The pricing of the currency pair went over the 100-EMA and is testing the 200-EMA for the pair’s 4-hour chart. Meanwhile, moving averages for the USD/JPY is currently on the downward direction. Resistance levels for the pair are expected to be at 103.50, while support levels for the pair are expected to be at 103.00. MACD indicators for the pair declined, showing seller strength. RSI indicators are now a few pips away from the oversold level which signals a possible downward move for the pair.

 

If the USD/JPY continues to be subject to downward pressure, then the pair could possible reach its previous low of 102.50. However, there is still a probability that the pair would be able to reach its resistance levels at 103.50-103.80 points.

[Andrea ForexMart]

AUD/JPY Fundamental Analysis: November 4, 2016

 

The AUD/JPY was able to remain in the positive side of the chart as the USD incurred more losses against the JPY and increased pressure on the cross currency pair. The AUD/JPY pair hit session highs at 79.42 points but eventually reverted back to its previous range of 79.10 points.

 

While the AUD/JPY lost some of its previous gains, the AUD/USD pair increased further and was able to reach its highest range in November after the Australian retail sales data showed a 0.6% increase as compared to September’s data of 0.4%. However, the increase in this currency pair was not enough to outweigh the decrease in the value of USD/JPY.

 

If the AUD/JPY manages to go over 79.42 could possible lead to a strong resistance level at the 80.00 trading range. If the pair closes the trading session over the zero figure then this could induce more bulls and could possibly cause the pair to go further at 81.52 points. The pair’s support levels is expected to be at 79.00 and could cause a sell-off at the 78.48 and 78.00

 

[Andrea ForexMart]

Technical Analysis for USD/JPY: November 7, 2016

 

The USD/JPY pair was able to make a small recovery during last Friday’s session after a series of risk-offs which hit the European and American stock market. However, the pair continues to stay in the negative territory and traded within Thursday’s low levels on Friday’s session. The currency pair had a fairly bearish stance after the pair experienced selling pressure above the 103.00 region. Resistance was encountered by USD bulls along the 103.20 trading range where the 200 EMA is also located. The 200 EMA maintained the pressure on the USD/JPY by resisting all possible recovery moves.

 

The 50 and 100 EMAs for the currency pair decreased quickly, while the 200 EMA maintained its bearish outlook for the session. Resistance levels for the currency pair is expected to be around the 103.50 range, while support levels are expected to come up at the 103.00 region. The technical indicators for the USD/JPY pair are seen to be slightly bearish, with an increase in the MACD indicator showing a weakness in seller positions. Meanwhile, the RSI indicators for the pair is still consolidating within its undervalued regions.

 

The USD/JPY pair is expected to have its resistance levels at 103.50 if the currency pair would be able to consolidate over the 103.00 region. However, the USD/JPY might again experience a decline if the pair closes the session with a lower value than this particular level.

 

 

[Andrea ForexMart]

USD/JPY Technical Analysis: November 8, 2016

 

The Bank of Japan and the Federal Reserve did not release any important economic statements today, and investors from Japan are not expected to make any significant movements until after the US presidential elections. The USD/JPY pair is also expected to further decrease in value due to the most recent movement in oil prices. The USD/JPY pair further widened its gap during Monday’s session, increasing from 103.13 to 103.74 points due to gap traders triggering an increase in the gap value.

 

Meanwhile, the pair’s pricing was able to increase by up to 104.50 after the upward momentum for the pair decreased and is expected to be sustained until the end of the New York session. The 4-hour chart for the pair showed the USD going over its current moving averages, with the 50, 100, and 200 EMAs exhibiting an upward direction. Resistance levels for the support is expected to be at 104.50, while support levels are expected to be at 104.00 points.

 

MACD levels for the pair exhibited a drop in seller strength due to its increase. RSI indicators are still in the overvalued range but could probably go lower as the trading session progresses. The negative outlook for the USD/JPY could possibly fade if the currency pair goes over 104.00 points, and buyers could be able to increase their profits if it reaches 105.00. Conversely, bears might be able to induce the pricing to go beneath 104.00 points.