The secular bear market for the US Dollar Index concluded towards the end of 3Q-2015. At this juncture, a new bullish trend was initiated. Since the 2Q-2015 to present date, the dollar has been consolidating and confronted with the challenge of surmounting a triple-top. If it breaks above this level, which it probably will, given […]
Sometimes the best thing to do is nothing at all and this is exactly what the ECB’s President Draghi decided. Here are three key highlights from the ECB policy meeting.
Here’s something different or at least slightly so. The Japanese Yen continues to gain against the US Dollar despite hawkish comments on Tuesday from the Federal Reserve. The USD/JPY has retraced more 50% of the move between its 10-year low and high. The 100 level will be a psychological test for it, but real support […]
The uncertainty of if Britain will decide to exit the EU is passé as the decision to leave has been made. The unanswered part of this economic calculus is “when”, which remains a variable. What we do know is that Britain will have to renegotiate terms for a new economic relationship with the EU and that […]
The Euro has been declining for three consecutive days against the British Pound, but has yet to make a significant break to downside. The one thing holding support for this forex pair is the pending Bank of England (BOE) monetary policy announcement. Many speculators are expecting further stimulus and rate reductions to counter the economic […]
At some point this has to end badly. Below is a 20-year monthly chart of the British Pound vs Japanese Yen (GBP/JPY). As one can see, it has sold off severely since the Brexit decision and could very well be on its way to completing a full 100% bearish Fibonacci retracement. (See chart below) Of […]
The forex markets had a full week to respond to the reality of Brexit, which is a game changer with an impact that has yet to be fully determined or credibly quantified. The only thing we know for sure is that traders and investors hate uncertainty, The GBP/USD (British Pound vs US Dollar) closed out […]
The US Dollar Index has traded between the ranges of 100 to 93 since March-2015, which has made it range-bound. In December-2015, it began its descent as it started to weaken against the Euro and Yen currencies. Currently trading near levels which have displayed consistent levels of buying support, the greenback may be overdue for […]
The US Dollar vs Yen (USD/JPY) has garnered most of the attention in the currency markets. However, another forex pair that has intrigued me is the Euro vs Yen (EUR/JPY). The weekly chart I have provided below indicates the trend is clearly bearish, but after having completing a 50% retracement, it is very close to […]
The USD/JPY is converging on its 50-day moving average, which is currently at 110.25. Earlier today, it faded resistance @ 109.64 and two days prior to that, it advanced to as high as 109.55 before pulling back to as low as 108.46. In a previous post, I noted that @ 109.55 was a key intraday […]
Technical analysis of a 4-hour time frame chart spanning 6 months for the USD/JPY (US Dollar vs Japanese Yen) shows the pair attempting a bullish reversal from its bottom @ 105.546. Thus far, it has almost completed a 23.6% retracement near 109.84. A traditional 38.2% retracement takes it to @ 112.50, while 50% and 61.8% […]
The US Dollar may be firming against the Japanese Yen. As illustrated, the 3-day time-frame chart for the USD/JPY is testing a key support level, which is the 38.2% (@ $106.64) Fibonacci retracement of its move from $75.563 (Oct-2011) to $125.849 (June-2015). The currency pair also appears to have successfully tested support @ $105.25.
The China Syndrome , North Korean announcement of a hydrogen-bomb, and Middle East tensions between Saudi Arabia and Iran are just a few of the dramas playing on the sentiment of investors. All the world’s a stage and in the theatres of geopolitics and capital markets, the Yen (USD/JPY) currently has center stage. All eyes […]