USDJPY, H1
The Greenback is underperforming so far going into the US session, presently sitting at near net unchanged levels against the Euro and Swiss Franc, while losing ground to the Dollar bloc and most emerging world currencies, the last two groups rising amid a lift in global stock markets.
The US Dollar is showing 0.2% loss against the Yen as well. USDJPY settled lower today after posting a fresh 6-week high of 111.13 during the Tokyo session. It is currently trading below 50-period EMA in the hourly chart, for the 1st time in a week. News that China moved to steady the Yuan helped cool trade retaliation concerns, though Trump upped the ante yesterday on the WTO and Friday looms with another $34 bln in tariffs vs China.
The pair reached 110.57 lows, after breaking below S1 and outside the lower Bollinger Bands pattern in the 1-hour chart. Despite the weakness noticed since this morning, momentum indicators suggest that the negative momentum is running out of steam and hence the swing lower could alert a “buying the dip” concept. This is due to the fact that most momentum indicators have flattened above the oversold territory barrier. RSI and Stochastic crossed below 50 today however both remain above the 30 barrier so far, while MACD oscillator slipped lower below its signal line but holds within the positive area.
The pair has immediate Support levels at 110.55 and 110.40 (200-period EMA and S2). Hence only a break below them could open the way to 109.90-110.15. If the pair manage to hold above 110.55 then it is likely to see a rebound back above PP level.
Intraday Support levels come at: 110.55, 110.40 and 110.17.
Intraday Resistance levels come at 111.85, 110.11 and 111.30.
Click here to access the HotForex Economic calendar.
Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE! The next webinar will start in:
[ujicountdown id=”Next Webinar” expire=”2018/07/04 14:00″ hide=”true” url=”” subscr=”” recurring=”” rectype=”second” repeats=””]
Andria Pichidi
Market Analyst
HotForex
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
