USDJPY showed yesterday that its trajectory price stayed in a reasonably neutral leap attaining 108.32:108.95 while any lower expectations did not materialize. Yesterday, they predicted that today higher movement will continue finding meanwhile, support from session highs of 108.87. The buying pressure as indicated by Directional Movement pictured the remains to stay high while ADX trend continues to stay vigorous as well; however, there is no security that overbought conditions continue and it really went deeper since yesterday. RSI levels for both the hourly and the daily are important events to watch. For today, amend the targeting levels of 107.50 before resuming a wider uptrend.
The levels of RSI eased lower on the hourly chart following a consolidation just off 109 levels, despite the persisting conditions appearing on the daily charts. In the near term, lower correction still remains on the cards in the near term. Failing to break over109.45 today will again result to lowering of price drift lower with initial support from intraday that is seen at 108.66/108.35/108.02.
In the Asian front, Japan will soon release its All Industries Activity m/m, while the United States will be publishing some economic data as the CB Leading Index m/m. This will offer a big possibility that during the day, USD/JPY will be moving with low volatility. For the present, technical levels are: (1) Resistance at 3: 109.05; (2) Resistance at 2: 108.84; (3) Resistance at 1: 108.63; (4) Support at 1: 108.36; (5) Support at 2: 108.15; (6) Support. 3: 107.94; and (7) Disclaimer at Trading Forex or foreign exchange carrying a margin high level of risk that may not be apt for all investors. Working against you or for you is a leverage having high degree.
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You can get a view on what the market is up to. Note the update of each pair of currency has its own story and how each support of each other versus the green buck.
EUR/USD: It is getting closer to 1.30 and starts climbing to the highest level since the big measures of Draghi. With a clear resistance at about 1.30, it is followed by 1.3050 while support is at 1.2960 is followed by 1.2920.
GBP/USD: The pair reached 1.63 but it reverted back to 1.6285. The growing notion of a No vote in Scotland is helpful to the pound. Just be sure to follow the timetable for the big day of the referendum.
USD/JPY: Green bucks and yen are losing 107; however, the move is more limited here. This seems to be a risk now that both “safe haven” currencies are together.
AUD/USD: The pair has already gone below 0.90 two times following the Chinese news later jumped to 0.91 and is now the level is a bit below.
NZD/USD: This pair stays above 0.82 as the OK milk auction has been supporting the duo.
USD/CAD: Sorry that the pair fell under 1.10, making ii a full round trip. Canada’s strengthening manufacturing sales gave the initial boost to the loonie.
The next schedule of Fed meeting looks bleak for the green buck.
The European Central Bank and People’s Bank of China support liquidity to deal with abating growth. This underlines a disagreement in direction among the world’s largest economies even as the US moderates stimulus.
China’s central bank is infusing 500 billion Yuan or $81 billion into some of the biggest banks in the country.
Economists project that the US Federal Reserve Chair will declare a $10 billion reduction in its bond purchases every month after the policy meeting.
The credit expansion scheme of China works on directed measures to prop up growth while discontinuing mixed stimulus which was practiced in the United States.
In adopting a three-month period for its infusion, China opts for a regulatory process aimed at stimulating demand for credit in an economy burdened with debt.
The PBOC will channel 100 billion Yuan each to China’s five major banks for three months.
China’s financial policy is inclined toward quantitative easing which may go on throughout 2015.
Bank stocks recovered in Hong Kong. The Chinese currency stopped a four-day slip while the one year interest rate exchanges declined since June.