Technical Analysis

USDJPY (JPY crosses) rebounds after Pres. Trump comments (for now at least)

Stocks trying to rebound

Pres. Trump made the comments that you might expect, and stocks have come off lows.  The USDJPY was already seeing a modest bounce after a fall below a lower trend line failed.  The price rise eyes the lows from last week at 109.45-46 and at falling topside trend line at 109.48. 

We currently trade at 109.36.

Earlier I commented on the AUDJPY as it tested a lower trend line and retracement level:

Looking at the daily chart, the price low for the day has reached down to 75.80.    There is a channel trend line at 75.76.   Below that is the 50% retracement of the move up from the January “flash crash” low at 75.68 (I am using Bloomberg data as the low from the flash crash can vary).  There may be a cause for pause technically against the trend line/retracement area as a result of dip buyers sticking a toe in the water. However, I would not expect them to “love” the position given the market uncertainty.  They could get “lucky” though. The stocks slide is prone to corrections from a tweet/or WH comment.   We know Pres. Trump is teethered to the stock market.     

The low reached 75.72 and bounced (see chart below).  We are currenty testing the underside of the broken trend line. A move above will be eyed for more upside potential.

AUDJPY tests underside of broken trend line

Articles You May Like

Weekend China press hints at currency intervention
GBPUSD making new lows as PM May drama plays out
Cable buyers look to retest key near-term level amid weaker dollar
Eurozone consumer confidence for May -6.5 vs -7.7 estimate
Live Forex Trading – Stream Hosted by Forex.Today

Leave a Reply

Your email address will not be published. Required fields are marked *