Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

USD/JPY Breaks Important Trend Line

Published 06/19/2017, 11:05 AM
Updated 07/09/2023, 06:31 AM

As many of you know, I have been bullish or at least neutral the dollar for the last couple of weeks expecting a strong bounce toward 98.50-99. The Dollar index is mainly moving sideways since mid May and we need a break above 97.50 to confirm a short-term at least reversal that will bring us toward 98.50-99.

4-Hour USD

The main drivers in the up coming bounce will be USD/JPY and EUR/USD. EUR/USD is unable to reclaim 1.12 and with a double short-term rejection at the cloud resistance in the 4-hour chart, I believe it is only a matter of time before we break 1.11 toward 1.10-1.09.

4-Hour EUR/USD

USD/JPY has broken above important trend line resistance and is heading toward the medium-term resistance at 112-113.

Daily USD/JPY

NZD/USD is also at a pivotal long-term resistance area around 0.73 with rejection signs as we have been pulled back twice….0.7180 is key support, if broken we confirm reversal.

Daily NZD/USD

USD/CAD despite Oil’s decline has fallen toward a long-term support trend line. Will it move higher with oil and confuse traders relying on its classical inverse relationship with oil? I believe so.

Daily USD/CAD

AUD/USD

4-Hour AUD/USD

Posting bearish divergence signals and a double top at 0.7635, once the red upward-sloping TL is broken (0.7590) we should expect to see it test the Kumo at 0.7540 at least.

GBP/USD

Daily GBP/USD

In a bearish channel but no bullish divergence in the daily chart. One more new low could be at hand before a meaningful move higher above 1.30.

Can’t be more clear than this….I would not be bearish dollar here…and I prefer short EUR/USD and long USD/JPY for the coming days.

Latest comments

Great hindsight! Your are not alone in that train of thought.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.