Thursday 19 July 2018

USD/JPY Plunged on Trump's comments


During the European session the USD/JPY pair skyrocketed and reached highest levels since early January, having marked daily high at 113.18. But Trump’s comments on Fed’s policy that rate hikes are causing troubles on the economic progress made bulls give up. Earlier today the data from Japan showed better than expected numbers on trade balance while imports printed huge drop comparing to previous month (from 14% to 2.5%).
Currenlty the pair is trading at 112.48 after had pinned daily low at 112.05. On the four hour time frame the price is developing above its bullish moving averages, so the long term uptrend is not at risk. RSI and stochastic are displaying strong bearish slopes and are close to oversold territories. Further declines are expected in case of closing below the daily low which will bring next bearsih target at 111.80. On the other hand bulls might try to fight the first resistance at 112.60 which if broken will offer next one at 113.00.





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