|Day's Range||74.05 - 74.353|
|52 Week Range||70.3520 - 83.8700|
The Fourth Quarter has started in a traditionally volatile mode. Equities are down, Government Bonds and Gold are in demand and in the Forex market it is the Japanese Yen that is benefitting the most. What does the 20-day simple moving average tell us?
The Australian Dollar now has the dubious honour of being the worst-performing G10 currency so far this month, in the leadup to its federal elections on May 18.
Today, I have for you three pairs with Japanese Yen. This pair is considered as a safe haven asset, so in theory, should gain, when the sentiment on the market is bearish.
Global risk sentiment turned positive on Friday afternoon as mixed trade data from China eased concerns over slowing global growth. With investors back in the mood for riskier assets, the Japanese Yen which is considered as a safe-haven currency tumbled across the board.
Trading on the market recently is pretty tough. The price is not moving in trends, often changes direction and creates many false breakouts.
USDJPY’s pullback from 109.10-20 is less likely to signal the pair’s weakness unless a sustained drop beneath three-week-old upward slanting trend-line, at 108.40 now, takes place on the four-hour chart. If the pair slip under the 108.40, the 107.70, the 107.00 and the 106.70 support-levels may gain sellers’ attention. Meanwhile, clear break of 109.20 enables the pair to aim for the 109.50 and the 110.00 resistances. In case prices manage to extend its up-moves past-110.00, the 110.25-30 seems crucial to watch as it holds the gate for the pair’s rally to 110. ...
AUDUSD needs to close beyond 50-day & 100-day SMA confluence-region of 0.7195-80 in order to aim for 0.7240 and the 0.7300 resistances; however, the 0.7330-40 area, comprising 200-day SMA & nine-month old descending trend-line, can restrict the pair’s upside past-0.7300. In case prices continue rallying past-0.7340, the 0.7400, the 0.7440 & the 0.7485 may flash on Bulls’ radars to target. Meanwhile, failure to offer a D1 close above 0.7195 could drag the pair back to 0.7150 and then 0.7075 prior to challenging the 0.7015-10 support-zone. ...
The major support according to the daily chart was the May 29, 2018 main bottom at 108.114. This chart showed that sellers had a clean shot at 104.600, which makes me wonder if it was actually a “flash crash”, or a well-played strategy to break the Dollar/Yen.
Although USDJPY’s U-turn from 100-day SMA & support-line of short-term symmetrical triangle helped it cross 50-day SMA, the triangle-resistance, at 114.00, could challenge the pair’s strength. Given the buyers’ ability to surpass 114.00 barrier on a daily closing basis, the 114.55 and the 115.00 might entertain them before pleasing with 61.8% FE level of 115.30. On the contrary, 50-day SMA level of 113.00 and the 112.55 can offer immediate supports to the pair ahead of highlighting 112.35-30 support-confluence for one more time. If at all prices slid beneath 112. ...
Early-month risk-on moves recently helped the AUD to recover some of its latest losses and AUDUSD is no exception to this as it crossed 0.7145-40 region; however, the pair needs to sustain the breakout in order to aim for 0.7200 and the 0.7235-40 resistance-area. Given the quote continue rising past-0.7240, the 0.7260 & 0.7300 are likely following numbers to appear on the Bulls’ radar to target. If at all prices fail to hold their strength and slide beneath 0.7140, the 0.7120 & 0.7100 can come-back on the chart. Assuming the pair’s extended downturn below 0.7100, the 0. ...
It’s early to talk about the strengthening of the AUD because up to now, there are no crucial fundamental factors that may become drivers for the Australian currency. Let’s go through all the factors that can be a market mover for the Australian Dollar.
The new week starts for us with the analysis of the USDJPY, where we do have a nice bullish setup. In addition to that, USDJPY drew a bullish price formation – Inverse Head and Shoulders pattern (yellow).