USDJPY Rebounds and Tests Major Downtrend Line Resistance

10 February, 2017

The Chicago Fed President Charles Evans, a FOMC voting member, made a speech yesterday. Evans is regarded as a dove in the FOMC.

He stated that he supports gradual interest rate hikes, three rate hikes this year are not unreasonable, as he foresees Trump’s fiscal policies will likely boost inflation and economic growth.

In addition, he said the inflation must hit the 2% target for the Fed to maintain its credibility. In order to bring the inflation up to its 2% target, the Fed must keep the rates low and accept a modest undershooting of its unemployment goal.

The dollar index rebounded yesterday after testing the significant support line at 100.00.

USD/JPY has turned bearish since the beginning of this year, as a result of the weakening of the dollar. However, the bearish momentum has waned since 6th Feb, after testing the near term major support line at 111.50.

Yesterday the price rebounded with a long bullish candle. However, on the daily chart, the current price is trading right at the short term major downtrend line resistance, where the pressure is heavier.

In addition, the 4 hourly Stochastic Oscillator is crossing over from above, be aware that the bullish momentum is likely to be restrained here.

The resistance level is at 113.80, followed by 114.00 and 114.30.
The support line is at 113.50, followed by 113.00 and 112.50.

Keep an eye on the US Michigan consumer expectations and sentiment for February, to be released at 15:00 GMT, as it will likely influence the strength of the dollar and dollar crosses.


Source link   Presented by FxPro

USD/JPY recovers to 107 area

10-year US T-bond yield extends slide, drops below 2%. US Dollar Index stays calm near the 96 mark. Fed's Williams & Bostic, FOMC Chairman Powell...

Oscillates in a familiar trading range

The USD/JPY pair lacked any firm directional bias and seesawed between tepid gains/minor losses through the early European session on...

USD/JPY climbs to 1-week tops

Improving risk sentiment dents the JPY's relative safe-haven status. The USD remains supported by a solid rebound in the US bond yields. Focus now shifts...


USD/JPY backs away from highs

US Dollar Index retreats toward 97 area. Nikkei Manufacturing PMI in Japan improves slightly in March. Coming up: Retail sales and manufacturing...

USDJPY Jumps As UK Rejects No-Deal Brexit

The UK parliament rejected a no-deal Brexit on Thursday evening. This leads to speculation that the UK might formally ask the EU for an extension...

On Wednesday Yen slips in Asia

On Wednesday, the Japanese yen headed south versus its major peers because investor risk appetite improved during Asia trade, although worries...


USD/JPY keeps showing a negative trend

Since the beginning of the week, USD/JPY fell by 100 points. The currency pair is close to the round 109.000 with 109.550 acting as the closest...

USD/JPY started to grow after a long descent

Yesterday the quotes grew by 100 points and updated the local maximums. Right now the safe haven currency is consolidating and has good prospects...

USD/JPY in an aggressive sell-off

During the trading yesterday, the yen grew by more than 1% against the USD. The quotes reached 111.000 and can descend further. The local resistance...

  


Share it on:   or