Yen bears fail at big hurdle

18 April, 2017

Yen bears fail at big hurdle

USD bulls have managed to claw back some ground in the market today as the dollar was buoyed by positive market sentiment for the US economy and some risk appetite after the Easter season. For large market movers this was apparent for the USDJPY as it looked to claw back some of the ground after last week's big move below the 200 day moving average. The market as a whole has treated the Yen as the ultimate hedge for recent global unrest and uncertainty, and if we see more of this then we could see larger drops in the long run for the USDJPY. But for now sellers of the USD against the Yen seem to have run out of steam and this, in part, is on the back of technical's as well, which remain quite strong.

The 200 day moving average is currently acting as dynamic support in the market, and traders on shorter time frames will be looking to push lower on any bearish movement towards it. However the bears have had their time to shine and have failed to push the USDJPY below the 200 day moving average. Targets higher will be around 110.139 for the first level of resistance and 111.655 after that. I would anticipate we will see further large movements in the long run, especially if we see continue strong US fundamentals and some resistance from the BoJ from the strengthening Yen.

Gold has been a strong player in recent weeks as the Trump election causes headaches for markets, and as fears of war disrupting the global economy also linger. As a result the gold bulls have been pushing the price higher, and this comes on the back of the likelihood of interest rates being lifted further in the near future. However today it has come against some resistance for a change as it struggled to break through the bearish trend line that has been in play since July 2016. This trend line is quite apparent, and should come as no surprise to markets traders who would have been targeting this level over the past week - all eyes will now be on it to see if does indeed stop further movements higher.

With gold so far failing to break through the $1290 level we could see some profit taking from the market, especially as jaw boning over North Korea comes with less weight than previously. With that in mind, traders may look to target lower support levels with an emphasis on $1275 as the first level and the next leg down being at $1263. The 20 day moving average is also worth noting, as markets have made a habit of playing of this level with strong trending markets, so if it does become bearish it may support the bears in the short term while they look to make some ground. 

Source link  
Sterling steady ahead of UK inflation data

Having successfully moved into phase 2 of Brexit talks, the focus will shift back to economic data in the UK. Today’s November CPI will likely be a market...

Market waits on Bank of Canada

With a US tax bill and a Brexit currently flying around in the markets it's hard not to get lost on the bigger picture for other countries as well.

Investors rotate from Tech to Financials

U.S. stock indices ended mixed on Wednesday. While the Dow-Jones industrial average closed at a record high after U.S. GDP showed the...

Consumer confidence hits record high

Consumer confidence was the star of the show today as it came in with its strongest reading since 2000. The reading of 129.5 (124 exp), is one of...

SP500 lifts to record high on US housing

The US market continued to steal the spotlight today in Monday trading as it continued to look robust as usual. New home sales m/m came...

Equities slide ahead of a busy week

Despite a record high close on the S&P 500 last Friday, Asian equities edged lower, led by Korean markets. Chinese stocks continued to decline...

Yen bulls jump on weak FED inflation

FOMC meeting minutes are always greeted warmly by the markets, as a glimpse of the potential future direction of the FED going forward...

S&P 500 hits record high

The US equity markets jumped sharply today on the back of positive economic data as US home sales m/m came in strongly at 5.48M (5.40M exp)...

European currencies dip on German politics

The Euro had a pause for concern in the evening trading session as the coalition talks in Germany fell apart leading to a political crisis in Germany.