Japanese yen inaugurated early trading hours with a sharp tone facing strong US dollar, armored with positive local Retail Sales at 0.1% compared to 0.7% on previous sessions. USD/JPY rallied yesterday 92 pips and clocked a high 112.84 but managed to deduct -40 pips this morning as the pair plunged to 112.44 low. US index strong performance yesterday at 101.18 high was justified by positive local Durable Goods at 1.8%, while forecasts were 1.6%. Fed President and 2017 FOMC voter Kaplan crossed wires yesterday with a repetition to his previous comments that Fed rates should be increased sooner rather now and quoted:
even raising rates a few times this year would leave monetary policy stance accommodative.
Fundamentals:
1- US Prelim GDP q/q today at 1:30 PM GMT (heavy Impact)
2- US Consumer Confidence today at 3:00 PM GMT (less Impact)
Technical:
Trend: Bearish Sideways
Daily Pp: 112.48
Resistance levels: R1 112.86, R2 113.58, R3 114.29
Support levels: S1 112.04, S2 111.37, S3 110.59
Remark: Keep an eye on US Index levels with local US news today. Stalling below S1 projects further attacks towards S2 level. Closing above R1 levels will spark additional bullish waves at R2&R3 levels. Above R2 the cable to be considered bullish.
Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.