USD/JPY steadily climbs to session tops, optional relationship distant than mid-110.00s
Risk-on setting/US-China trade optimism continues to weigh very more or less JPYs safe-port status.
The prevalent USD selling bias seemed to be without help factors capping any add-on upside.
The USD/JPY pair outstretched its steady intraday climb through the to the lead European session and is currently placed at the zenith cease of its daily trading range, in the tab to the 110.60 region.
Growing optimism on the summit of a realizable genuine of the US-China trade disputes, especially after both sides reported proceeds in last week's trade talks, continued weighing concerning the subject of the Japanese Yen's fasten-waterfront status and assisted the pair to construct concerning Friday's late rebound from 110.25 level.
The uptick, however, lacked any solid follow-through and the pair remained capped below Friday's swap high in the company of the prevalent US Dollar selling bias in wake of the US President Donald Trump's assertion of a national emergency not far away and wide off from associate occurring security upon Friday.
Investors plus seemed reluctant to place any rough bids ahead of this week's important general pardon of the latest FOMC meeting minutes and absent relevant proclaim unbearable economic releases upon Monday upon the urge in the report to of the Presidents Day holiday in the US.
Against the backdrop of a more dovish shift by the Fed, the FOMC meeting minutes will be looked upon for open clues on summit of the central bank's rate hike passageway for the settle of 2019 and might outlook out to be the neighboring huge set in motion for the pair's adjacent leg of a directional offend.
Technical levels to watch
Any subsequent occurring-disquiet might continue to viewpoint some bustling supply close the 111.00 handles, above which the pair is likely to objective towards testing 100-hours of daylight SMA resistance near the 111.70 regions. On the flip side, the 110.35-25 region now becomes an unexpected preserve to defend, which if abnormal might twist the pair vulnerable to challenge the key 110.00 psychological marks.
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What’s next? – USDJPY 21.03.18
The dollar was trading 0.05 percent lower vs the Japanese yen at 106.47 as of 04:40 GMT on Wednesday, with the dollar easing as Fed’s monetary event approaches.
The US dollar index, which measures the greenback against six major currencies, was trading 0.10 percent lower at 89.86 by the time of this writing.
The Federal Reserve is expected to raise interest rates for the first time this year by 25 basis points, which would put the benchmark rate in a range between 1.50 and 1.75 percent.
According to Fed funds CME Group’s FedWatch program, market players are currently pricing in a nearly 94 percent chance of a rate hike this week. It would be the first hike of 2018.
Analysts have pointed out Fed’s interest rate hike has already been priced in, explaining a downward correction is likely once the official announcement is done.
However, the dollar could extend gains if Jerome Powell opts for a more hawkish rhetoric. The US regulator has forecasted at least three rate moves for 2018.
No relevant data was released on Tuesday.
Ahead in the day, market players will be paying attention the release of existing home sales for February at 14:00 GMT and the interest rate decision for March as of 18:00 GMT. Investors will also carefully monitor a speech by Fed Chair Jerome Powell.
In an accelerated up trend, EUR/USD is now probing the 100 week MA and more importantly it is closing in on our advocated target of 1.1875 which corresponds to the lows of 2012 and a projection for the ongoing move.
(Note - not just closing in, its now hit there)
SG go on:
It is tentatively piercing above a steep daily upward channel however the move now appears to be a bit overstretched as both weekly and daily indicators are at their respective resistance levels.
In case of persistent bullish momentum, next objective will be near 2012 lows of 1.2043. 1.1760 is an immediate support while previous highs of 1.1714/1.1675 should cushion short term downside. Down sloping channel drawn since 2015 at 1.1490/60, also the 23.6% retracement from January will be a medium term support
AUD/USD gained 0.49% to 0.7438, the highest since November 17.
The Australian Bureau of Statistics earlier said that construction work done dropped 4.9% in the third quarter, compared to expectations for a 1.7% fall.
NZD/USD rose 0.21% to trade at 0.7078.
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