The lack of bearish stimulus did not allow the Greenback to breach the combined support of the 100– and 200-hour SMAs circa 106.20. Thus, the Asian session started with a solid surge which erased all loses accumulated during the previous day.
The pair is currently trading in a two-week ascending channel. Given that its lower boundary was not reached yesterday, the pair could reverse significantly its current market sentiment and go for a test of this line, the weekly pivot point and the 100-hour SMA at 106.40 during the first part of the day. The remaining session is likely to be dominated by the US inflation data released at 1230GMT.
Chart: USD/JPY H4
That's good to know, thanks.
ReplyDeleteGreat take on markets!
ReplyDeleteIt's consolidating for now.
ReplyDeleteGreat post as always.
ReplyDeleteThe pair remains bearish.
ReplyDeleteExcellent Analysis! Thanks.
ReplyDeleteBears continue strong.
ReplyDelete