|
Currency |
Last |
High |
Low |
Daily Change (pip) |
Daily Range (pip) |
|
USDJPY |
83.60 |
84.26 |
83.52 |
60 |
74 |
The Japanese Yen rallied to a fresh yearly high against the greenback on Tuesday and is the best performing currency amongst the majors following the shift in market sentiment, and the low-yielding currency may continue to appreciate throughout the day as investors scale back their appetite for risk. The USD/JPY is 60 points lower on the day after moving 86% of its average true range and the exchange rate certainly has some more room to trend lower throughout the North American trade as the low-yielding currency benefits from risk aversion, but there could be a corrective retracement going into the Asian session as the 30-minute RSI bounces back from a low of 20. As a result, there appears to be a bullish divergence forming in the relative strength index , and the dollar-yen may look to fill-in the gap from the 120-SMA at 84.23, which coincides with the 240-SMA.
Key Levels/Indicators
|
Level/Indicator |
Level |
|
50-Day SMA |
86.26 |
|
20-Day SMA |
84.89 |
|
10-Day SMA |
84.40 |
|
Daily RSI |
35 |
Upcoming Events
|
GMT |
Importance |
Release |
Expected |
Prior |
|
23:50 |
MED |
Trade Balance - BOP Basis (Yen) (JUL) |
865.0B |
769.0B |
|
23:50 |
LOW |
Adjusted Current Account Total (Yen) (JUL) |
1362.9B |
1362.1B |
|
23:50 |
LOW |
Current Account Total (Yen) (JUL) |
1534.6B |
1047.1B |
|
23:50 |
LOW |
Bank Lending Banks Adjustments (YoY) (AUG) |
-- |
-1.7% |
|
23:50 |
LOW |
Bank Lending incl Trusts (YoY) (AUG) |
-- |
-1.8% |
|
23:50 |
LOW |
Bank Lending Banks ex-Trust (AUG) |
-- |
-1.9% |
|
23:50 |
MED |
Machine Orders (MoM) (JUL) |
2.0% |
1.6% |
|
23:50 |
MED |
Machine Orders (YoY) (JUL) |
8.1% |
-2.2% |
|
23:50 |
LOW |
Japan Money Stock M2+CD (YoY) (AUG) |
2.6% |
2.7% |
|
23:50 |
LOW |
Japan Money Stock M3 (YoY) (AUG) |
1.9% |
2.0% |
|
4:30 |
LOW |
Bankruptcies (YoY) (AUG) |
-- |
-23.1% |
|
5:00 |
MED |
Eco Watchers Survey: Outlook (AUG) |
46.4 |
46.6 |
|
5:00 |
MED |
Eco Watchers Survey: Current (AUG) |
49.9 |
49.8 |
|
Currency |
Last |
High |
Low |
Daily Change (pip) |
Daily Range (pip) |
|
EURUSD |
1.2752 |
1.2877 |
1.2736 |
123 |
141 |
The Euro pared the decline from the previous week and slipped to a low of 1.2736 as investors scaled back their appetite for risk, and the single-currency may continue to trend lower throughout the U.S. trade, which could lead the exchange rate to test the 100-Day SMA at 1.2676. The EUR/USD is down 120+pips from the open after moving 119% of its daily ATR, but the bullish divergence in the 30-minute RSI suggests that the sharp decline is tapering off, which could lead the pair to work its way back towards the 240-SMA at 1.2810 going into the middle of the week. However, as risk sentiment continues to dictate price action in the currency market, the rise in safe-haven flows could lead to further weakness in the euro-dollar, and a break below the 100-Day SMA would expose the previous month’s low at 1.2586.
Key Levels/Indicators
|
Level/Indicator |
Level |
|
50-Day SMA |
1.2833 |
|
20-Day SMA |
1.2769 |
|
10-Day SMA |
1.2758 |
|
100-Day SMA |
1.2676 |
Upcoming Events
|
GMT |
Importance |
Release |
Expected |
Prior |
|
6:00 |
MED |
German Trade Balance (euros) (JUL) |
13.0B |
14.1B |
|
6:00 |
LOW |
German Current Account (euros) (JUL) |
11.5B |
12.9B |
|
6:00 |
LOW |
German Imports s.a. (MoM) (JUL) |
0.1% |
1.6% |
|
6:00 |
LOW |
German Exports s.a. (MoM) (JUL) |
0.0% |
3.7% |
|
10:00 |
MED |
German Industrial Production s.a. (MoM) (JUL) |
1.0% |
-0.6% |
|
10:00 |
MED |
German Industrial Production n.s.a. and w.d.a. (YoY) (JUL) |
12.5% |
10.9% |
Join us to discuss the outlook for the major currencies on the DailyFXForums
To discuss this report contact David Song, Currency Analyst: dsong@fxcm.com
DailyFX provides forex news on the economic reports and political events that influence the currency market.
Learn currency trading with a free practice account and charts from FXCM.
