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
Bearish
USD/JPY
Bullish
Gold
Bearish
Oil - US Crude
Bullish
Bitcoin
Mixed
More View more
Breaking news

British Pound surges after UK exit poll shows Conservatives expected to win 368 seats out of 650

EUR/JPY Remains Capped by Former Support; Lower-High in Place?

EUR/JPY Remains Capped by Former Support; Lower-High in Place?

2014-07-31 14:20:00
David Song, Currency Strategist
Share:

Talking Points:

- EUR/JPY at Risk for Lower-High as Focus Turns to ECB & BoJ Meetings

- Waiting for RSI Break on USD/CAD to Favor Downside Targets

- USDOLLAR Remains Overbought Ahead of Non-Farm Payrolls (NFP)

Index

Last

High

Low

Daily Change (%)

Daily Range (% of ATR)

DJ-FXCM Dollar Index

10539.76

10555.79

10523.34

0.12

124.65%

EUR/JPY:

  • Despite the downturn in risk sentiment, EUR/JPY continues to threaten former support around 137.70-90.
  • Need a turn in the Relative Strength Index (RSI) for confirmation/conviction of a lower-high as it threatens the bearish momentum from earlier this year.
  • European Central Bank (ECB) and Bank of Japan (BoJ) interest rate decisions may set the tone for the August trade as the Governing Council looks to implement more non-standard measures.

USD/CAD:

  • Sits at support from the beginning of the year around 1.0900-20, while the RSI struggles to push into overbought territory.
  • A bearish break in the oscillator should highlight a near-term topping process in the USD/CAD.
  • DailyFX Speculative Sentiment Index shows retail crowd has turned net-short USD/CAD this week as the ratio stands at -1.90.

For more updates, sign up for David's e-mail distribution list.

EUR/JPY Remains Capped by Former Support; Lower-High in Place?

Join DailyFX on Demand for Real-Time SSI Updates Across the Majors!

Read More:

Price & Time: The Longer-Term Implications of Recent USD Strength

USD/JPY Fueling Broader USD Breakout; EUR/USD Weak Under 1.3400

USDOLLAR Daily

EUR/JPY Remains Capped by Former Support; Lower-High in Place?

Chart - Created Using FXCM Marketscope 2.0

USDOLLAR(Ticker: USDollar):

  • Dow Jones-FXCM U.S. Dollar Index remains overbought as it threatens the next topside objective around 10,555-10,561.
  • Need to see the RSI break down from the bullish trend for a near-term pullback; looks as though a more bullish outlook will take shape as the Fed remains on course to halt its quantitative easing (QE) program in October; when will markets start to price it in?
  • Beyond Non-Farm Payrolls (+231K), we will keep a close eye on Average Weekly Earnings (2.2%) as Chair Janet Yellen continues to highlight the slack in the labor market.
  • Interim Resistance: 10,555 (50.0% retracement) to 10,561 (100% retracement)
  • Interim Support: 10,354 (Oct. low) to 10,375 (50.0& retracement)

Release

GMT

Expected

Actual

Challenger Job Cuts (YoY) (JUL)

11:30

--

24.4%

Employment Cost Index (2Q)

12:30

0.5%

0.7%

Initial Jobless Claims (JUL 26)

12:30

300K

302K

Continuing Claims (JUL 19)

12:30

2492K

2539K

NAPM-Milwaukee (JUL)

13:00

61.00

63.87

Chicago Purchasing Manager (JUL)

13:45

63.0

52.6

Click Here for the DailyFX Calendar

--- 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

News & Analysis at your fingertips.