News & Analysis at your fingertips.

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.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
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
Oil - US Crude
Bearish
Wall Street
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
Gold
Bullish
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Breaking news

US House Speaker Nancy Pelosi announces no fiscal stimulus deal reached after failed talks Thursday evening

Real Time News
  • Heads Up:🇯🇵 Unemployment Rate (AUG) due at 23:30 GMT (15min) Expected: 3% Previous: 2.9% https://www.dailyfx.com/economic-calendar#2020-10-01
  • RT @FxWestwater: EU Stoxx 50 Forecast: Bears Ready to Drag Index Lower on Rising Virus Cases? - via @DailyFX https://www.dailyfx.com/forex/market_alert/2020/10/01/EU-Stoxx-50-Forecast-Bears-Ready-to-Drag-Index-Lower-on-Rising-Virus-Cases.html ht…
  • The New Zealand Dollar’s correction lower against the Japanese Yen and US Dollar may be at an end, as NZD remains constructively perched above key chart support. Get your $NZD market update from @DanielGMoss here:https://t.co/8GiKFTfrMP https://t.co/NbRPmU4ce2
  • S&P 500 Outlook: Stocks Flop, VIX Pops on Failed Stimulus Talks Link to Analysis via @DailyFX - https://www.dailyfx.com/forex/market_alert/2020/10/01/sp500-outlook-stocks-flop-vix-pops-on-failed-stimulus-talks.html $ES_F $SPX $SPY #Trading https://t.co/FDVzo9yV4X
  • Yesterday’s gains in the Euro had largely stemmed from month & quarter end rebalancing flows, which had been quite the contrary to various investment bank models touting USD buying. Get your $EURUSD market update from @JMcQueenFX here:https://t.co/zgvi24o4SR https://t.co/7qn4zTf6es
  • $EURUSD Daily Pivot Points: S3: 1.1497 S2: 1.157 S1: 1.1601 R1: 1.1673 R2: 1.1716 R3: 1.1789 https://www.dailyfx.com/pivot-points?ref=SubNav?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • Forex Update: As of 20:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.48% 🇦🇺AUD: 0.28% 🇨🇭CHF: 0.25% 🇪🇺EUR: 0.21% 🇯🇵JPY: -0.06% 🇬🇧GBP: -0.29% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/7SFSKZGIXS
  • Commodities Update: As of 20:00, these are your best and worst performers based on the London trading schedule: Silver: 2.39% Gold: 1.04% Oil - US Crude: -0.06% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/shTxKyCvb8
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.66%, while traders in US 500 are at opposite extremes with 65.68%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/rUjXP0dNLh
  • New York City Government Bonds downgraded from Aa1 to Aa2 by Moody's - BBG
USDOLLAR to Threaten 2014 Range on Dovish Fed- USDJPY Eyes 100.00

USDOLLAR to Threaten 2014 Range on Dovish Fed- USDJPY Eyes 100.00

2014-02-10 17:20:00
David Song, Strategist
Share:

Talking Points:

- USDOLLAR Outlook Hinges on Fed Testimony; January Low (10,619) in Focus

- Japanese Yen Benefits from Risk Aversion; Lower High in Place?

Index

Last

High

Low

Daily Change (%)

Daily Range (% of ATR)

DJ-FXCM Dollar Index

10641.63

10656.39

10638.45

-0.03

47.15%

USDOLLAR Daily

Forex_USDOLLAR_to_Threaten_2014_Range_on_Dovish_Fed-_USDJPY_Eyes_100.00_body_Picture_3.png, USDOLLAR to Threaten 2014 Range on Dovish Fed- USDJPY Eyes 100.00

Chart - Created Using FXCM Marketscope 2.0

  • 2014 Range in Focus Ahead of Humphrey-Hawkins Testimony
  • Bearish RSI Momentum Highlights Risk for Fresh Lows
  • Interim Resistance: 10,753 (23.6 expansion) to 10,759 (61.8 retracement)
  • Interim Support: 10,561 (100.0 extension)- Closing Basis

Release

GMT

Expected

Actual

No Scheduled Releases

The Dow Jones-FXCM U.S. Dollar Index (Ticker: USDollar) remains under pressure ahead of the Fed’s Humphrey-Hawkins Testimony as the dismal Non-Farm Payrolls (NFP) report dampens bets of seeing another $10B taper at the March 19 meeting.

Indeed, the greenback may face additional headwinds over the near-term should the Federal Open Market Committee (FOMC) implement a more dovish twist to its forward-guidance or even opt for a smaller series of reductions in its asset-purchase program, but the majority may look to stay on its current course as the unemployment rate approaches the 6.5 percent threshold.

With that said, the USDOLLAR may preserve the 2014 range should central bank Chair Janet Yellen stick to the script from the January 29 meeting, but a meaningful shift in the policy outlook may spark fresh lows in the greenback as it dampens bets of seeing the Fed halt Quantitative Easing (QE) later this year.

Join DailyFX on Demandto Cover Current U.S. Dollar Trade Setups

Forex_USDOLLAR_to_Threaten_2014_Range_on_Dovish_Fed-_USDJPY_Eyes_100.00_body_ScreenShot068.png, USDOLLAR to Threaten 2014 Range on Dovish Fed- USDJPY Eyes 100.00

USDJPY Daily

Forex_USDOLLAR_to_Threaten_2014_Range_on_Dovish_Fed-_USDJPY_Eyes_100.00_body_Picture_1.png, USDOLLAR to Threaten 2014 Range on Dovish Fed- USDJPY Eyes 100.00
  • Stalls at Former Support; RSI Appears to Turning at Trendline Resistance
  • Interim Resistance: 103.30 (23.6 retracement) to 103.50 (100.0 expansion)
  • Interim Support: 100.50 (61.8 expansion) to 100.70 (61.8 expansion)

The greenback advanced against three of the four components, led by a 0.30 percent decline in the Australian dollar, while the Japanese Yen bucked the trend, with the USDJPY pulling back from former support zone.

Given the strong correlation between the JPY and the S&P 500, a further downturn in market sentiment may ultimately produce a more meaningful move back towards trendline support, and we will continue to watch the downside targets this week as the USDJPY appears to be carving another lower high.

In turn, we will keep a close eye on the bearish RSI momentum for confirmation as well as conviction for a further decline in the USDJPY, and the pair remains at risk for a larger correction as market participants scale back their appetite for risk.

--- 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 DailyFX 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