We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Mixed
USD/JPY
Bearish
Gold
Bullish
Oil - US Crude
Bearish
Bitcoin
Bearish
More View more
Real Time News
  • RT @conorsen: @selling_theta @LJKawa https://t.co/vVfmLgHd9b
  • RT @iv_technicals: So you thought it was all contained, right?! Mhm. Cool stuff. https://t.co/PShm600IPS
  • RT @globaltimesnews: #Hubei Province reported 371 new cases of #WuhanCoronavirus and 24 new deaths on Jan 26 local time; total infection ca…
  • What is market volatility and what does a market event volatility look like? Find out from @PaulRobinsonFX here: https://t.co/vg7w10la3j https://t.co/QpD4VP4vDc
  • The last time the $USDJPY suffered this large of a bearish gap in a bearish slide (this one still nascent), was back in May: https://t.co/hTxfyVFiox
  • *Reminder: Weekly Strategy Webinar tomorrow morning at 8:30am EST on DailyFX! - https://t.co/RgnsklZ2Gl
  • Japanese Yen, US Dollar May Gap Higher as Week Starts on Virus Fears $USDJPY #USD #coronarovirus - https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/asia_am_briefing/2020/01/26/Japanese-Yen-US-Dollar-May-Gap-Higher-as-Week-Starts-on-Virus-Fears.html?CHID=9&QPID=917702 https://t.co/RwVEF3rrO6
  • Here is my video to prep for the new trading week: "S&P 500 Tumble Threatens Quiet Bull Channel, #Fed and 4Q #GDP Top Event Risk" https://www.dailyfx.com/forex/video/daily_news_report/2020/01/25/SP-500-Tumble-Threatens-Quiet-Bull-Channel-Fed-and-4Q-GDP-Top-Event-Risk-.html?ref-author=Kicklighter?CHID=9&QPID=917719
  • RT @AFP: #BREAKING Five rockets hit near US embassy in Iraq capital: security source https://t.co/2Brj01kU3R
  • Everyone develops their trading style differently; however, these are two effective strategies for trading $XAUUSD that every trader ought to be aware of: https://t.co/UHmxPVEiQU https://t.co/XrOawSAdqd
USD/JPY, AUD/USD, NZD/USD Price Rally May Extend on Trade Deal

USD/JPY, AUD/USD, NZD/USD Price Rally May Extend on Trade Deal

2019-12-13 00:00:00
Daniel Dubrovsky, Analyst
Share:

Asia Pacific Market Open Talking Points

  • Australian and New Zealand Dollars soar on US-China trade deal, UK exit poll
  • British Pound rising against average of its major peers to levels seen in 2016
  • Anti-risk Japanese Yen may weaken, but USD/JPY upside momentum is fading

AUD, NZD, GBP Soar as USD, JPY Drop on US-China Trade Deal, UK Exit Poll

The sentiment-linked Australian and New Zealand Dollars are soaring at the expense of the anti-risk Japanese Yen and haven-linked US Dollar after the UK Exit Poll projected a larger-than-expected majority for Boris Johnson’s Conservative Party. Against an average of its major counterparts, the British Pound is hitting levels last seen from its significant collapse after the Brexit Referendum in 2016.

Such a result will make it easier for Johnson to pass his Brexit deal by the end of January. That helps reduce uncertainty over the future of EU-UK negotiations relative to a hung Parliament outcome. Just before this exit poll crossed the wires, US President Donald Trump signed off on a trade deal with China to avert raising tariffs on each other over the weekend.

These events combined helped induce a strong “risk-on” tilt in markets. According to the details of the trade accord, the United States would slash currently-imposed tariffs by about 50 percent. In exchange, China promised items such as agricultural good purchases and improved protection on intellectual property. Anti-fiat gold prices declined as US government bond yields rallied.

Introduction to Forex News Trading
Introduction to Forex News Trading
Recommended by Daniel Dubrovsky
Download our guide to learn about trading around news
Get My Guide

Friday’s Asia Pacific Trading Session

Actual results of the UK General Election will slowly trickle in during the coming hours. The British Pound could have more room to rally if confirmation of a UK Conservative majority is achieved. S&P 500 futures are pointing noticeably higher heading into Friday’s Asia Pacific trading session, pointing to gains in regional bourses. The focus for foreign exchange markets will thus likely be on the Nikkei 225, ASX 200 and Shanghai Composite. The AUD and NZD could have room to extend gains as JPY and USD decline.

Japanese Yen Technical Analysis

The US Dollar has managed to clock in cautious gain against the Japanese Yen, but USD/JPY is struggling to breach the key psychological barrier between 109.49 to 109.72. Negative RSI divergence shows fading upside momentum which can at times precede a turn lower. That would place the focus on key support which is a range between 108.23 to 108.55.

Charts of the Day – USD/JPY

USD/JPY, AUD/USD, NZD/USD Price Rally May Extend on Trade Deal

Chart Created Using TradingView

Australian Dollar Technical Analysis

Meanwhile, the Australian Dollar has surged above key falling resistance from the end of last year. AUD/USD is attempting to confirm a daily close above the key psychological barrier between 0.6894 to 0.6929. Taking this area out opens the door to reversing the dominant downtrend that has prevailed for this year. Otherwise, a turn lower places the focus on support at 0.6862.

Charts of the Day – AUD/USD

USD/JPY, AUD/USD, NZD/USD Price Rally May Extend on Trade Deal

Chart Created Using TradingView

Starts in:
Live now:
Jan 29
( 01:01 GMT )
You might be interested in
What Do Other Traders Buy/Sell Bets Say About Price Trends?
Register to webinar
Join now
Webinar has ended

--- Written by Daniel Dubrovsky, Currency Analyst for DailyFX.com

To contact Daniel, use the comments section below or @ddubrovskyFX on Twitter

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.