As expected there was high volatility and this naturally
perplexed the markets. The winner turned to be Trump and therefore the US
Dollar began to weaken against the major
currencies. The Mexican peso hit a record low. The greenback began to weaken
against the Japanese Yen and the EUR as well and pinned 101.20 and 1.1300
respectively. Looking for safety, markets turned to more secure currencies – the
Japanese Yen and the Swiss franc.
After marking the low at 101.20, the USD/JPY pair quickly pushed higher to print
new fresh 4-month high at 105.85. Although at the moment the uncertainty has gripped
the markets, the pair is continuing its rally, as seen on the 4-hour chart.
And indicators seem to favour the rally. Its clearly seen the sharp bounce from
the oversold areas. RSI is showing overbought market and is currently placed at
63%. Stochastic turned to north and is also confirming the strong bullish
slope. Another point is that the price has returned back above the levels of
the 100-day and 200-day SMA.
First resistance is seen now at 106.00 while the first support is currently located
at 105.50.
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