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
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
GBP/USD
Mixed
USD/JPY
Mixed
Gold
Bullish
Oil - US Crude
Mixed
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
Bitcoin
Mixed
More View more
Real Time News
  • RT @GlobalTimesBiz: After more than two weeks of #China’s efforts to resume business activities, only 30 percent of migrant workers has ret…
  • It seems the markets are riding high, but risk is always lurking around the corner. Consider your escape plan before you find yourself in collapsing market. What are the top havens for different conditions in 2020? Find out from @JohnKicklighter here:https://t.co/1oeXWEsJkb https://t.co/c5YVgs5YKD
  • While Sino-US trade jitters are temporarily abating, China-Swedish trade tensions are rising as a part of a political contagion of growing economic hostilities between nations across the world. Get your market update from @ZabelinDimitri here:https://t.co/F1fVoyzoz5 https://t.co/z49NzgZrXd
  • RT @malkudsi: Natural Gas Eyes Pushing Higher as Support Holds - Nat Gas Technical Analysis More details in the link below: https://t.co/HG…
  • As prices dance around on charts, traders are often looking for reasons to explain price movements; however, the underlying source of price movement boils down to the relationship between supply and demand. Learn more about the forces of S&D on forex here: https://t.co/8LfkLXbj2W https://t.co/swcuwAMGAk
  • How can traders avoid #FOMO in trading? Start by implementing a well-heeled plan taking only four hours per week. Get your insight from @JStanleyFX here: https://t.co/vwUShQPc27 #tradingstyle https://t.co/4adyTWvQ22
  • What are the Market cycles? How are #currencies impacted in these cycles? How can these cycles impact #forextrading patterns? Find out here: https://t.co/ckr2fUOWqW https://t.co/gLJGj1FAOC
  • Central bank independence has several advantages and disadvantages. Find out what they are in-depth with @MartinSEssex here: https://t.co/wVFXbbTxf1 https://t.co/J0MMkVmCUu
  • Get your stock market basics right - what is the stock market and how does stock trading work? Find out here: https://t.co/JfAJLAtlsY https://t.co/ZfPUxHWeiG
  • The Mexican economy contracted for the first time in almost 10 years in 2019, but growth is expected to pick up in 2020 according to its finance minister. Get your $USDMXN market update from @HathornSabin here: https://t.co/gupJdU7WYT https://t.co/mMN8LFb5i5
USD at Risk of Limited Rebound- JPY Searching for Support

USD at Risk of Limited Rebound- JPY Searching for Support

2013-10-11 17:55:00
David Song, Currency Strategist
Share:

Talking Points:

- USDOLLAR Relief Rally Continues to Take Shape Amid Debt-Limit Deal

- USDJPY Breakout Eyes Topside Targets

Index

Last

High

Low

Daily Change (%)

Daily Range (% of ATR)

DJ-FXCM Dollar Index

10539.77

10542.65

10513.67

0.08

58.61%

USDOLLAR Daily

Forex_USD_at_Risk_of_Limited_Rebound-_JPY_Searching_for_Support_body_Picture_3.png, USD at Risk of Limited Rebound- JPY Searching for Support

Chart - Created Using FXCM Marketscope 2.0

  • Continues to Carve Short-Term Base; Range-Bound Prices Ahead?
  • Bullish Relative Strength Index Momentum Gathers Pace
  • Interim Resistance: 10,582 (23.6 expansion) to 10,589 (50.0 retracement)
  • Interim Support: 10,470 Pivot

Release

GMT

Expected

Actual

Univ. of Michigan Confidence (OCT P)

13:55

75.3

75.2

Fed's Powell Speaks on Monetary Policy Panel in Washington

15:00

Fed's Rosengren Speaks at Council of Foreign Relations in NY

17:00

G-20 Economies Hold Press Conference in Washington

17:30

The relief rally in the Dow Jones-FXCM U.S. Dollar Index (Ticker: USDollar) continues to take shape on Friday amid hopes that Congress will reach a near-term solution to get the government back up and running.

The relief rally may gather pace next week as U.S. policy makers mull a six-week plan to raise the debt ceiling, but the rebound may be limited as the fiscal drag dampens the outlook for the world’s largest economy. As a number of Fed officials are scheduled to speak next week, including Chairman Ben Bernanke, the fresh batch of central bank rhetoric may highlight a greater willingness to delay the exit strategy further, and the dollar may face additional headwinds over the near to medium-term amid the risk of seeing the FOMC carry its highly accommodative policy stance into 2014.

As a result, the dollar may remain capped around 10,582 (23.6 percent Fibonacci expansion) to 10,589 (50.0 retracement), and the longer dating bearish trend may continue to take shape ahead of the Fed’s October 29-30 meeting as market participants scale back bets of seeing the central bank taper its asset-purchase program later this month.

Forex_USD_at_Risk_of_Limited_Rebound-_JPY_Searching_for_Support_body_ScreenShot228.png, USD at Risk of Limited Rebound- JPY Searching for Support

USDJPY Daily

Forex_USD_at_Risk_of_Limited_Rebound-_JPY_Searching_for_Support_body_Picture_1.png, USD at Risk of Limited Rebound- JPY Searching for Support
  • Bullish Breakout in Focus; RSI to Threaten Bearish Trend Dating Back to May
  • Interim Resistance: 98.50 Pivot to 98.75 (50.0 retracement)
  • Interim Support: 96.40 (23.6 expansion) to 96.55 (50.0 expansion)

Two of the four components gained ground against the greenback, led by a 0.12 percent rally in the Australian dollar, while the Japanese Yen continued to weaken against its major counterparts, with the USDJPY advancing to a fresh weekly high of 98.58.

It looks as though it will only be a matter of time before we see a more meaningful move at 98.75 (50.0 percent Fib retracement) as the bullish breakout takes shape, and we may see the dollar continue to strengthen against its Japanese counterpart as the Relative Strength Index looks poised to threaten the bearish momentum dating back to May.

Despite the delay in the Fed’s exit strategy, expectations of seeing a debt resolution may continue to push the USDJPY higher, but the policy outlook may generate further Yen strength as the Bank of Japan (BoJ) continues to sit on the sidelines.

--- 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.

Trade Alongsidethe DailyFX Team on Analyst on Demand

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.