USD/JPY uplifted

USD/JPY closed last Friday quite bearish, bur during yesterday’s session recovered some of the losses. The pair climbed with 34 pips to 103.59 after trading within narrow range between 103.78 and 103.59. 
Currently the USD/JPY pair is showing some bullishness although the Japanese yen may suffer during the next weeks. The pair retested the resistance located at 104.00, but couldn’t move higher. Next resistance is located at 104.30 and we must consider this as a key level, because this is where the pair stopped climbing higher. That said level has been support, but the last time the pair reached it, it has become resistance. The importance of this level comes from the fact that this is the last peak, marked by the pair. If USD/JPY close above and this level turn to support, we will witness a higher low, higher top and turning of 104.30 from resistance to support again. And hypothetically trend reversal should follow.But at present, the price cannot push above 104.30, and more likely the pair will remain in sideways movement between 104.30 and 100.00.  Strong support is seen at 101.40 - 101.50.

MACD is showing bullish signs. RSI is in the overbought area and pointing positive divergence. 

EUR/USD

The past week was full of events that moved the markets. However the EUR/USD pair finished the week in the well know area. The greenback was seen slightly higher against the single currency, supported by the excellent PMIs numbers. The euro stepped downwards depressed by ECB’s talking.

From technical viewpoint there is no significant change of the levels to watch in the coming week. Immediate support is located at 1.1165 and resistance is seen at 1.1250 and 1.1285. Technical indicators are not showing what is going to follow next. Moving averages are very close to current price movement and RSI is around 50. The momentum is positioned around 100 level, also failing to point nothing significant. 

Finally: Q4 Trading Kick-off

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USD/JPY in consolidation

USD/JPY pair was trading elevated today with moving higher above 50-day, 100-day and  200-day moving averages. The pair has not been so much uplifted for months and probably the rising expectations for Fed’s rate hike are provoking for US dollar’s strength and at the same time pressuring for the safe haven yen. 

Anyway the USD/JPY pair marked today an intraday high at 104.14, but couldn’t hold it for long time and slight downward movement followed. Currently the pair is consolidating around 104 handle. It is very hard to predict the further behaviour of the pair, especially tomorrow, as the NFP release is going to be the main engine that will stir the markets.RSI is showing overbought market and stochastic is showing strong strong momentum is above the 80 line. Resistance is now located at 104.30 and further on at 105.00, which is key pattern. Looking downwards support is seen at 103.69  and 102.64.

The Brexit is not enough, skyfalls over the Pound

The Brexit is not enough. September skyfalled over the Pound and it continued drifting. Fundamentals were ignored. BoE left rates unchanged. PIM pointed neglection of initial reactions caused by the referendum. Politicians’ spectre is not colourful enough. For their eyes only economic indicators are not seen in the living daylights. 

Another shock was delivered this week by the Prime Minister Theresa May. A view to kill the access to the single market by limiting the people migration. Mrs No already scheduled Rocky Brexit. Do you think UK economy can stand this turbulence? Well the Pound coundn’t and fell to a new fresh 31-year low against the US dollar. Uncertainty is rising inevitably and this will not bring anything sustainable for the Pound.

Technically speaking for the GBP/USD pair the bias remains bearish. RSI is slightly above the oversold area, momentum is showing bearish signals DMI’s provide confirmation. Moving above the current level of 1.275 would be possible in a short-term perspective,but anyway we must consider the weakness of the Pound and expect further downward movement.  

Gold posted new fresh low

While the US dollar is boosted today by stronger economic data along with the rising expectations of Fed’s rate hike, gold prices plummeted and hit a new fresh low.

XAU/USD pair was sliding downwards for sixth consecutive session and pressured mainly by the US dollar strength extended its fall to reach an intraday low at $ 1265. The pair crossed the 100-day moving average as well as the key support level at $ 1300. It is important to mark that gold prices have not visited significant lows since end of May 2016, when tumbled to $ 1198.

As seen on the daily chart, gold has formed five waves descending line and is currently riding the third one at $ 1351. The Stochastic is showing oversold market and RSI neared negative area. Expecting corrective movement towards $1300/1305 area. Resistance is now located at $ 1300 and $ 1318. Support is seen at $ 1268 and $ 1250.

EUR/USD tuneless

During the last week the EUR/USD pair was trading tuneless and almost muted by the tight range for fifth consecutive week, as markets need something more exciting to stir the mood.

The eye catch for the week was the first US Presidential debate between Hillary Clinton and Donald Trump. I’m eager to watch the next one, the promise of a stable policy against the wild and risky businessman definitely will shake the financial markets.

The greenback finished the week solid, somehow boosted by risk sentiment rather than by strong local data and EUR/USD pair was hovering around 1.20 handle.

Technically speaking, the par is stuck between 1.1120 and 1.1280, and it is very hard now to escape out of this tight range. In the short-term the pair is seen in the neutral area with lack of strenght to move out of it.

There is no change of the support and resistance levels, so the upcoming week will offer nothing significant until Friday, when NFP data will be realeased. Support is currently located at 1.1160, 1.1120and 1.1000. Resistance is seen at 1.1245, 1.1285 and 1.1360.