|Day's Range||109.3 - 109.3|
|52 Week Range||106.7760 - 114.5110|
The US dollar initially tried to rally during the week against the Japanese yen but as you can see did pull back significantly to show signs of weakness again. While the US dollar strengthens against many other currencies, the Japanese yen is a bit of an outlier as it is considered to be “safer” than the greenback.
The British pound initially tried to rally during the week but gave back most of the gains to reach down towards the ¥138 region. That is a major support level, and I fully anticipate that it should hold the market, at least temporarily.
The US dollar stabilized against the Japanese yen during the trading session on Friday, as we continue to hover around the 109.70 level. This is a market that is highly sensitive to risk appetite, that tends to correlate quite nicely with the S&P 500.
The British pound has initially tried to rally during the trading session on Friday but has given back quite a bit of the gains as more of a “risk off” attitude has creeped back into the markets.
Based on the early price action and the current price at 109.556, the direction of the USD/JPY on Friday is likely to be determined by trader reaction to the uptrending Gann angle at 109.573.
Brexit and EU Elections along with UK retail sales figures to influence the GBP, with durable goods orders out of the U.S also in focus.
With the clowns running things in London, it’s no surprise that the British pound can hang onto gains. With this being the case, it’s very difficult to imagine a scenario where we bounce, at least in the short term and it now looks as if we are getting ready to test the next major support level.
Data on Thursday showed that the labor market is gaining strength, even as the economy slows. Initial claims for unemployment benefits fell for the third-straight week to a seasonally adjusted 211,000, the Labor Department said.
Based on the early price action, the direction of the June U.S. Dollar Index on Thursday is likely to be determined by trader reaction to yesterday’s close at 97.881. Better-than-expected data could spike the Euro higher and the U.S. Dollar Index lower. The index could make a new high for the year if the data comes in weaker than expected.
The US dollar pulled back slightly against the Japanese yen during trading on Wednesday, and that being the case it’s very likely that we are going to continue to see a bit of range bound trading. After all, we are trying to fill a major gap and at the same time there are plenty of headwinds out there that make the markets nervous.
The British pound initially tried to rally during the trading session on Wednesday, as sellers came back in above the ¥140.50 level. That being said, we are approaching the bottom of the most recent candlesticks, which of course is a very negative sign.
Sterling slumped on Wednesday after reports that U.K. Prime Minister Theresa May could resign as soon as today amid Brexit chaos caused a sell-off of the pound. The U.S. is looking at similar restrictions on other companies, including Chinese video surveillance company Hikvision, according to Bloomberg and the New York Times.
Based on yesterday’s close at 110.485 and the current price action, the direction of the USD/JPY on Wednesday is likely to be determined by trader reaction to the 50% level at 110.355.
UK Inflation and European politics to whipsaw the Pound ahead of the FED monetary policy meeting minutes later today.
Investing.com - The U.S. dollar was hovering near one-month highs against a currency basket on Wednesday, supported by higher U.S. Treasury yields after the U.S. temporarily eased restrictions on Chinese telecommunications giant Huawei.
The US dollar’s rallied a bit against the Japanese yen during early trading on Tuesday, in a sign of strength yet again. This of course is a pair that is very sensitive to risk appetite globally so you have to keep that in mind.
The British pound initially broke down below the ¥140 level but found enough buyers underneath the turn things back around. This of course is in direct correlation to the fact that Theresa May has the backing ever cabinet members for whatever new deal she’s about to propose.
Based on the early price action and the current price at 97.900, the direction of the June U.S. Dollar Index the rest of the session is likely to be determined by trader reaction to the downtrending Gann angle at 97.950.
Based on the early price action, the direction of the USD/JPY on Tuesday is likely to be determined by trader reaction to the downtrending Gann angle at 110.030. A sustained move over 110.030 will indicate the presence of buyers. Taking out 110.318 will negate the reversal top, while a move through the 50% level at 110.355 could trigger a spike into the short-term Fibonacci level at 110.672.
Investing.com - The Australian dollar slipped against its U.S. counterpart on Tuesday in Asia after the Reserve Bank of Australia hinted that it would consider a case for a rate cut in June.
The Safe-haven pair dropped from last week’s high amid positive Japanese data and plunging USD Index. Iran Foreign Minister commented on Trump’s tweets against Iran as “genocidal taunts”.
The US dollar when sideways against Japanese yen for the most part during the trading session on Monday. At this point, it looks like the market is trying to figure out what is going to do about the US/China trade situation.