14 November, 2016
Japan's economic growth was seen rising strongly in the third quarter, according to data released earlier today. Official data showed GDP rising 2.2% on an annualized basis in the three months ending September. On a quarterly basis, GDP rose 0.5%, which was more than the forecasts of 0.2%. The yen weakened sharply across the board as a result. The US dollar is looking to maintain the gains from last week as prices touched a fresh 9-month high this morning.
USDJPY Daily Analysis
USDJPY (107.52): The US dollar is seen approaching the critical resistance level of 108.00 with the bullish momentum seen being maintained after Friday's hammer candlestick pattern. Still, the Stochastics Oscillator on the daily chart points to a hidden bearish divergence which could see the dollar ease back towards 104.00 where support needs to be established. Look for USDJPY to close below 106.65 which will confirm the downside bias towards 104.45 - 104.60.
NZDUSD Daily Analysis
NZDUSD (0.7083): NZDUSD extended its declines since last Wednesday's RBNZ rate cut decision. The kiwi broke down below 0.7235 - 0.7236 minor support and is seen testing the neckline support. Horizontal support is seen at 0.7046 which could be challenged, but bounce off this support cannot be ruled out. Look for a near term retracement back to 0.7235 - 0.7236 ahead of further declines. Below 0.7046, minor support is seen at 0.6982 followed by a longer-term decline towards 0.6669.
GBPJPY Intra-day Analysis
GBPJPY (13481): GBPJPY continues to consolidate above the 134.30 handle, but no significant highs have been formed as of yet. Support is seen near 134.30 - 133.72 region and a breakdown below this support could trigger further downside towards 131.65 support followed by 130.50 - 130.20 lower support. On the 1-hour chart time frame, the Stochastics also points to a bearish divergence, failing to confirm the current highs in price and indicating a near-term correction lower.
The latest revised GDP numbers from Japan showed that the economy advanced faster than previously expected. The data on the final reading...
The greenback continued to weaken against some of the major currencies yesterday amid a quiet trading day...
The US dollar index will be looking to a fresh week with the possibility of a rebound following last week's sharp declines..
The US dollar managed to stem the strong declines after developments from Washington...
The euro surged ahead to a fresh 6-month high earlier this morning as the price was seen tradingþ...
The US dollar extended declines strongly for another day as economic data...
The latest monthly manufacturing activity report released by the New York Fed yesterday...
The US dollar fell sharply on Friday after data showed that consumer price index rose 0.2%...
Economic data from the US continued to remain robust with the initial jobless claims declining to 236,000 for the week...