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
Oil - US Crude
Bearish
Wall Street
Bullish
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
Gold
Bearish
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • (#ASEAN Fundy) The US Dollar could rise against ASEAN currencies such as the Singapore Dollar as US-China tensions seem to escalate. The Indian Rupee is also looking ahead of local 1Q GDP data $USDSGD #USD $USDINR - https://www.dailyfx.com/forex/fundamental/article/special_report/2020/05/25/US-Dollar-May-Rise-as-SGD-Falls-on-US-China-Woes-Indian-Rupee-at-Risk.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/BHR1vaN8vO
  • BOJ GOV KURODA: - will consider expanding ETF purchases if needed - monetary easing is needed until price-target is met - will consider new easing measures if needed - BoJ's extraordinary measures wont stay post-coronavirus #USDJPY #BOJ
  • Commodities Update: As of 02:00, these are your best and worst performers based on the London trading schedule: Silver: 1.44% Oil - US Crude: 1.02% Gold: 0.15% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/zbMOhIkpeW
  • As political tensions between the US and China increase, $gld is picking up a safe-haven bid ahead of the long weekend and may look to press higher. Get your $XAUUSD market update from @nickcawley1 here: https://t.co/boUn4vyfCO https://t.co/beDj1yEO0U
  • Forex Update: As of 02:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.29% 🇦🇺AUD: 0.28% 🇬🇧GBP: 0.17% 🇪🇺EUR: 0.14% 🇨🇭CHF: 0.12% 🇯🇵JPY: -0.12% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/qj45yOo16T
  • BOJ GOV KURODA: - will consider changing rates of yield curve control if needed - will consider expanding loan programs if needed #USDJPY #BOJ
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.43%, while traders in US 500 are at opposite extremes with 78.26%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/4TavGtwG3Z
  • Risk-on tone prevailing in APAC trade. #SPX futures up with #AUD and #NZD as #USD, #JPY and #bonds decline. #Gold interestingly up with stocks despite higher yields, weaker US$ may be the driver https://t.co/MJH6iKu3MX
  • China sets #USDCNY daily reference rate at 7.1293 vs 7.1277 yesterday
  • BOJ GOV KURODA: - Won't hesitate to add to easing if needed, carefully watching virus impact #USDJPY #BOJ
Dollar Rebounds from Critical Support- Time to Buy USDJPY?

Dollar Rebounds from Critical Support- Time to Buy USDJPY?

2013-08-12 16:00:00
David Song, Strategist
Share:

Index

Last

High

Low

Daily Change (%)

Daily Range (% of ATR)

DJ-FXCM Dollar Index

10685.22

10701.51

10653.2

0.22

73.01%

Forex_Dollar_Rebounds_from_Critical_Support-_Time_to_Buy_USDJPY_body_ScreenShot278.png, Dollar Rebounds from Critical Support- Time to Buy USDJPY?

Chart - Created Using FXCM Marketscope 2.0

Release

GMT

Expected

Actual

Monthly Budget Statement (JUL)

18:00

-$96.0B

--

The Dow Jones-FXCM U.S. Dollar Index (Ticker: USDollar) is trading 0.22 percent higher from the open, with the greenback breaking out of the downward trend carried over from July, and the reserve currency may further retrace the decline from the previous month as it continues to find near-term support around the 10,650 region.

Although the economic docket remains fairly light throughout the North American trade, the technical outlook certainly points to a more meaningful rebound for the USDOLLAR, and the fundamental developments coming out in the days ahead may heighten the appeal of the reserve currency should they further the argument for the Federal Reserve to taper the asset-purchase program at the September 17-18 meeting. As we anticipate further dollar strength, we will look for a more meaningful move at the 50.0 percent Fibonacci expansion (10,708), but another failed run at the key figure may produce range-bound prices over the next 24-hours of trading as market participants weigh the outlook for monetary policy.

Forex_Dollar_Rebounds_from_Critical_Support-_Time_to_Buy_USDJPY_body_ScreenShot279.png, Dollar Rebounds from Critical Support- Time to Buy USDJPY?

With U.S. Retail Sales projected to increase another 0.3 percent in July, the resilience in private sector consumption should help to encourage an improved outlook for growth, and a positive print may spark a more meaningful rebound in the USDOLLAR as it dampens the Fed’s scope to retain its highly accommodative policy stance.

Indeed, we may resort back to our game plan of buying dips in the dollar as the 38.2 percent Fib (10,652) appears to be holding up as a higher low, and may see a move back towards the 11,000 handle over the near to medium-term as the FOMC appears to be slowly moving away from its easing cycle.

Forex_Dollar_Rebounds_from_Critical_Support-_Time_to_Buy_USDJPY_body_ScreenShot281.png, Dollar Rebounds from Critical Support- Time to Buy USDJPY?Forex_Dollar_Rebounds_from_Critical_Support-_Time_to_Buy_USDJPY_body_ScreenShot280.png, Dollar Rebounds from Critical Support- Time to Buy USDJPY?

The greenback rallied across the board, with the Japanese Yen and Australian dollar taking the biggest hit, and the USDJPY also appears to be carving out a higher low as it continues to trade above trendline support.

In light of the downward revision to Japan’s 2Q GDP report, the Bank of Japan (BoJ) may come under increased pressure to implement more non-standard measures at the September 5 meeting, and the policy meeting minutes due out later tonight may show greater conformity with the board as the new government plans to raise the sales tax in 15 years to address the ballooning deficit.

As a result, we may see the USDJPY continue to track sideways going into the Asia-Pacific trade, but we may have an opportunity to implement a ‘buy the dip’ strategy for the pair once the 97.00 handle gives way.--- Written by David Song, Currency Analyst

To contact David, e-mail dsong@dailyfx.com. Follow me on Twitter at @DavidJSong.

To be added to David's e-mail distribution list, please follow this link.

Looking to use the DailyFX Trade Signals LIVE? Check out Mirror Trader.

New to FX? Watch this Video

Join us to discuss the outlook for the major currencies on the DailyFXForums

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

DISCLOSURES

News & Analysis at your fingertips.