USDJPY looks to FOMC and BoJ meetings

15 June, 2016

The Federal Reserve will be releasing its monetary policy statement, economic projections and holding a press conference later today. The markets remain jittery ahead of the meeting, but the attention is on USDJPY, which will later see the BoJ meeting early tomorrow. EURUSD is showing signs of a recovery to 1.138 – 1.140 while GBPUSD looks poised for a short-term retracement to 1.44. Gold has stalled near 1289 – 1290 levels but risks a decline to 1220 – 1230 levels.

EURUSD Daily Analysis

EURUSD (1.120): EURUSD fell to 1.120 support yesterday, and price action shows that we could expect to see a bounce off this level. The upside is limited with the bounce off 1.120 likely to see EURUSD retrace back to 1.1380 - 1.140 which will mark a correction and also establish resistance at the level which was briefly tested earlier in June. To the downside, below 1.120, the next main support comes in at 1.110. Above 1.140, EURUSD could see further gains but could move sideways within 1.14975 - 1.1520 resistance level.

USDJPY Daily Analysis

USDJPY (106.1): USDJPY has been trading within 106.27 - 105.60 support for the past two days with prices being rejected near the lower end of the support. Any bounce off this support could see USDJPY test the resistance near 108.0 - 107.850 levels. On the 4-hour chart, price action is showing signs of shifting bias to the upside, but will be valid only on a close above the minor resistance at 106.5 - 106.70 level. To the downside, a close below 105.60 could see USDJPY slide lower to 105.35 - 105.00 support.

GBPUSD Daily Analysis

GBPUSD (1.413): GBPUSD extended its declines yesterday, but prices managed to close above the previous day's doji low at 1.4115. We could, therefore, expect to see a follow through here, with a close above 1.420 likely to see a near term rally towards 1.44250 to establish resistance on what was a support level previously. To the downside, in the event of a break below 1.4115, further declines are seen towards 1.40530 support. On the 4-hour chart, GBPUSD has marked a reversal with a doji and a close above 1.41482 could signal a near-term retracement in GBPUSD.

Gold Daily Analysis

XAUUSD (1284): Gold prices continue to remain biased to the upside with prices posting a high above 1289 yesterday. A follow through here could see gold prices likely to push higher on a close above 1290 - 1300 level, but the strong momentum led rally is likely to show signs of exhaustion. To the downside, support at 1230 - 1220 remains key to validate any further moves to the upside. With prices trading at resistance, gold could see a near term correction lower with minor support levels at 1273 - 1271 followed by the 1250 psychological support.


Source link  
Market Reaction As Higher Tariffs Kick In

The markets were trading mixed by Friday's close after the tariffs on goods imports from China were hiked from 10% to 25%. This came as the US and China...

USD Strengthens On ADP Payrolls

The latest monthly private payrolls data from ADP/Moody's Analytics showed that employers added 275k jobs in April. This beat estimates of a 181k increase...

BoC Holds Rates Steady

The Bank of Canada's monetary policy meeting yesterday saw the interest rates unchanged at 1.75%. However, the central bank cut the GDP forecasts...


Markets Open To A Quiet Trading Day

Economic data is sparse with only the release of the US new home sales report later in the day. The quiet start to the week comes ahead of some key...

Dollar Muted As Equities Rally Ease Off

The US dollar closed Monday's session unchanged as earnings reports from Goldman Sachs and Citi Group missed expectations, blaming the US economy....

Market Risk Appetite Wanes

The International Monetary Fund (IMF) cut its global growth outlook once again. For the year 2019, growth is forecast to rise by 3.3% compared...


USD retreats as factory orders weaken

The monthly factory orders report showed a 0.5% decline on the month matching estimates. The declines in February marks a fourth consecutive...

Unemployment Steady, USD Firms

The payrolls report for March saw the US economy adding 196,000 jobs during the month. This beat expectations of a 175,000 increase for the period...

Jobless Claims Fall To Record Lows

The US dollar was seen recovering from the losses from the day before. The weekly jobless claims report dropped by 10,000, falling to 202,000. This was the...

  


Share it on:   or