Market Overview

MultiBank Daily Market Report: USD/JPY Poised For More Losses, July 28, 2017

Share:

USD/JPY on the way down
USD/JPY is trading in the red and should approach and reach fresh new lows in the upcoming days because is located in the seller's territory. Is moving sideways on the daily chart and, but I hope that we'll have a clear direction very soon because the Nikkei stock index looks ready to make a significant move on the Daily chart.
The Yen increased in the morning also because has received a helping had from the economic figures, the Unemployment Rate decreased from 3.1% to 2.8% in June, more versus the 3.0% estimate, while the Tokyo Core CPI increased by 0.2% in July, beating the 0.1% estimate, the Househld Spending increased by 2.3% in June, exceeding the 0.6% estimate. Moreover the National Core CPI surged by 0.4%, matching expectations.

Price is trapped between the 50% and the 23.6% retracement levels, is located below the 38.2% retracement level, signalling that could decrease further. You can see that has failed to stay above the 38.2% retracement level and now should move towards the 50% retracement level, actually could be attracted by the confluence area formed at the intersection between the 50% level and the first warning line (wl1) of the ascending pitchfork.
The current corrective phase is natural after the false breakout above the 23.6% and after the failure to reach the third warning line (WL3).
The Yen could dominate the currency market as the Nikkei stock index failed once again to close above the 20058 static resistance, we false breakout in the yesterday's session that could send the index towards the 19700 level. A valid breakdown below the 19700 major static obstacle will open the door for more declines. I've told you in the last weeks that the JP225 looks exhausted on the Daily chart, but we needed a confirmation that will drop again.
EUR/CHF reached new peaks

EUR/CHF rallied and has extended the latest gains, climbed as much as 1.1361, much above the 1.1274 yesterday's high. You can see that has retreated a little in the last hours after the amazing jump, we could see a minor consolidation in the upcoming days above the upper median line (uml) of the ascending pitchfork.
EUR/GBP setting up for further gains

Has changed little today, but looks like is trying to resume the upside movement after the minor decrease, personally I would like if will come down to retest the median line (ML) before will jump much higher. We'll have a great buying opportunity if we'll have a retest of the ML.
By Olimpiu Tuns
Market Analyst

Risk Disclaimer:
Trading in general is very risky and is not suited for everyone. There is always a chance of losing some or all of your initial investment/deposit, so do not invest money you can afford to lose. You are strongly advised to carry out your independent research before making any trading decisions. All the analysis, market reports posted on this site are only educational and do not constitute an investment advice or recommendation to open or close positions on international financial markets. The author is not responsible for any loss of profit or damage which may arise from transactions made based on any information on this web site.

The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

Posted-In: Forex Markets

 

Related Articles

View Comments and Join the Discussion!
Lightning Fast
Market News Service
$199 Free 14 Day Trial
Book A Demo
Learn How You Can Succeed In The Market With Benzinga Pro

Fastest Market News

Real-Time News Alerts

Customizable News Filters

Book A Demo

What Does Wall Street Have To Say About Intel's Earnings Report?

MultiBank Exchange Group: USD/CAD The Silence Before The Storm, July 28, 2017