USD/JPY is expected to trade in a lower range as the key resistance is at 101.45. On Wednesday, U.S. stocks rebounded as the minutes of the U.S. Federal Reserve’s latest monetary policy meeting, which showed officials’ concerns over Britain’s vote on whether to leave the European Union, and a slowdown in U.S. job growth left investors thinking that the central bank would not increase interest rates soon. The Dow Jones Industrial Average rose 0.4% to 17,918, the S&P 500 climbed 0.5% to 2,099, and the Nasdaq Composite was up 0.8% to 4,859. Healthcare stocks took the lead.
European stocks remained under pressure with the Stoxx Europe 600 falling another 1.7%. The U.K. FTSE 100 lost 1.3%.
On the economic front, the U.S. trade deficit widened to $41.1 billion in May (vs $40 billion deficit expected) from $37.4 billion in April. And the ISM non-manufacturing index jumped to 56.5 in June (vs 53.3 expected) from 52.9 in May.
The benchmark U.S. 10-year Treasury yield edged up to 1.385% from the record low of 1.367% on Tuesday. Gold rose 0.6% to $1,364 an ounce, having gained 3.9% or $51 an ounce in a winning streak of six straight days. Silver was up 1.1% to $20.16 an ounce. Besides, Nymex crude oil rebounded 1.8% to $47.43 a barrel.
On the forex front, the British pound managed to rebound from the a day low of 1.2796 and closed at 1.2929, down 0.7% day on day, it closed below 1.3000 for the first time since June 1985.
EUR/USD climbed 0.2% to 1.1099 (one-day low at 1.1029). USD/JPY declined 0.4% to 101.31, while it was down to 100.18 earlier in the session.
Commodities-linked currencies were mixed. USD/CAD edged down 0.1% to 1.2960 after reaching as high as 1.3055. AUD/USD rebounded 0.8% to 0.7515. On the other hand, NZD/USD fell further 0.3% to 0.7128. A rebound brought the pair from a day low of 100.20 to 101.45 overnight, while leaving the key resistance at 101.45 . The pair was under pressure, and it is currently trading below the 20-period moving average. Meanwhile the relative strength index is around the neutrality level of 50 but lacks upward momentum. As long as the key resistance at 101.45 is not surpassed, the intraday outlook remains bearish, and the pair could return to 100.40 and 99.90 in extension.
Recommendations:
The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 100.40. A break below this target will move the pair further downwards to 99.90. The pivot point stands at 101.45. In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 101.90 and the second one, at 102.20.
Resistance levels: 101.90, 102.20, 102.80
Support levels: 100.40, 99.90, 99.25
The material has been provided by InstaForex Company – www.instaforex.com Source: Instaforex.com
USD/JPY is expected to trade in a lower range as the key resistance is at 101.45. On Wednesday, U.S. stocks rebounded as the minutes of the U.S. Federal Reserve’s latest monetary policy meeting, which showed officials’ concerns over Britain’s vote on whether to leave the European Union, and a slowdown in U.S. job growth left investors thinking that the central bank would not increase interest rates soon. The Dow Jones Industrial Average rose 0.4% to 17,918, the S&P 500 climbed 0.5% to 2,099, and the Nasdaq Composite was up 0.8% to 4,859. Healthcare stocks took the lead.
European stocks remained under pressure with the Stoxx Europe 600 falling another 1.7%. The U.K. FTSE 100 lost 1.3%.
On the economic front, the U.S. trade deficit widened to $41.1 billion in May (vs $40 billion deficit expected) from $37.4 billion in April. And the ISM non-manufacturing index jumped to 56.5 in June (vs 53.3 expected) from 52.9 in May.
The benchmark U.S. 10-year Treasury yield edged up to 1.385% from the record low of 1.367% on Tuesday. Gold rose 0.6% to $1,364 an ounce, having gained 3.9% or $51 an ounce in a winning streak of six straight days. Silver was up 1.1% to $20.16 an ounce. Besides, Nymex crude oil rebounded 1.8% to $47.43 a barrel.
On the forex front, the British pound managed to rebound from the a day low of 1.2796 and closed at 1.2929, down 0.7% day on day, it closed below 1.3000 for the first time since June 1985.
EUR/USD climbed 0.2% to 1.1099 (one-day low at 1.1029). USD/JPY declined 0.4% to 101.31, while it was down to 100.18 earlier in the session.
Commodities-linked currencies were mixed. USD/CAD edged down 0.1% to 1.2960 after reaching as high as 1.3055. AUD/USD rebounded 0.8% to 0.7515. On the other hand, NZD/USD fell further 0.3% to 0.7128. A rebound brought the pair from a day low of 100.20 to 101.45 overnight, while leaving the key resistance at 101.45 . The pair was under pressure, and it is currently trading below the 20-period moving average. Meanwhile the relative strength index is around the neutrality level of 50 but lacks upward momentum. As long as the key resistance at 101.45 is not surpassed, the intraday outlook remains bearish, and the pair could return to 100.40 and 99.90 in extension.
Recommendations:
The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 100.40. A break below this target will move the pair further downwards to 99.90. The pivot point stands at 101.45. In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 101.90 and the second one, at 102.20.
Resistance levels: 101.90, 102.20, 102.80
Support levels: 100.40, 99.90, 99.25
The material has been provided by InstaForex Company – www.instaforex.com
Source: Instaforex.com
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