USD/JPY at wait and see mode

The USD/JPY pair has finally settled close to the daily high at 111.427  after had pared most of its weekly losses supported by Japanese yen’s mood improvement. Asian shares are slightly up, following the Wall Street’s surge and the excellent macro data from Japan that mirrored in Nikkei PMI highest numbers in almost two years. 

Technically speaking the upwards potential is not showing strong structural indications. On the four-hour time frame the 100-day SMA is very bearish and pair yet is not able to advance above it. RSI has turned sharply to south and is surpassing the mid-lines, while stochastic is pointing north.

Strong resistance is seen at 111.60 and higher at 112.00. Support levels are located at 110.50 (the daily low) and 110.10 (March’s lows). 

All eyes now are on Friday's NFP release with expetations of 112.00 handle to cap advances.  

XAG/USD Confluence of July's trend line and June's support

Since the beginning of February Silver prices are sharply sloping to downwards. Today the price surpassed the important support level at $17.00 and currently is trading at $16.95.

On the daily chart is clearly seen the confluence of the downward trend staring from July 2016 and the support line at June’s 2016 lows. Could this be read as a turning point or a minor stop before continuation of the short term trend?

The same chart is also showing very bearish readings. Both RSI and stochastic are placed well below their mid-lines and are displaying strong bearish momentum.

Given the fact that the US Dollar is relatively strong now, there is reasonable opportunity Silver to continue losses even below December’s 2016 trend line. 

USD/CHF stuck around 0.98 handle

USD/CHF couldn’t post any significant movement yesterday. The pair manages to stay around 0.98 mark, after the bulls trying to conquer 0.9820 last Friday. Currently the bias remains bullish with next target 0.9850 - 0.9900 area. The intraday support is seen at 0.9745, where the 100-day and 50-day moving averages are crossing. A clear break below that area could lead the pair to neutral zone for testing 0.9750 - 0.9700 area. Further downside next support is located at 0.9690. Looking to the upside, resistance is seen at 0.9850. Major macro data that could stir the markets is due today by the SECO (State Secretariat for Economic Affairs) and tomorrow all eyes will be on Fed’s meeting.