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
Mixed
GBP/USD
Bullish
USD/JPY
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
Gold
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
Oil - US Crude
Mixed
Bitcoin
Bearish
More View more
Real Time News
  • Why do you require consistency in trading and why does it matter? Find out: https://t.co/WlEFlluGfZ #tradingstyle https://t.co/TkMtJQKatx
  • By issuing debt denominated in $USD, China is making a long-term bet that it will be cheaper to pay back its loans over time in the US Dollar; it believes the value of the US Dollar will fall. Get your market update from @CVecchioFX here:https://t.co/5GO9UrvO4y https://t.co/xV9urXXf48
  • What are some risk trading management techniques? Find out: https://t.co/RShdlDz9RA #tradingstyle https://t.co/M3ASPIHAep
  • #Dow Jones stages impressive recovery on a firm NFP report. #FTSE 100 eyes UK general election. Get your equities technical analysis from @JMcQueenFX here: https://t.co/o28UcG6N3l https://t.co/SwGAaFCFND
  • Why do you require consistency in trading and why does it matter? Find out: https://t.co/f4y1FOOZnM #tradingstyle https://t.co/x5HgYopWc5
  • The USD may rise if the FOMC re-affirms its data-dependent approach and cools 2020 rate cut bets. US retail sales and CPI data may also give the Fed impetus to hold rates. Get your $USD market update from @ZabelinDimitri here: https://t.co/XnDITaDOox https://t.co/A480uVMqF2
  • What tools does the ECB have left to stimulate the Eurozone? Where is the #Euro heading? Find out from Chief Eurozone Economist at Pantheon Macroeconomics Claus Vistesen only on Trading Global Markets Decoded #podcast hosted by @MartinSEssex here:https://t.co/Twr44cZ1GB https://t.co/DXlDH5Cp9e
  • The price of oil extends the advance from the October low as #OPEC and its allies pledge to take additional steps to balance the energy market. Get your crude #oil market update from @DavidJSong here: https://t.co/llGq8yPFH4 #OOTT https://t.co/1OCVOIrK98
  • Gold closed lower after paring early-week gains post-NFP on Friday. But will price finally break support? These are levels that matter on the XAU/USD weekly chart. Get your gold technical analysis from @MBForex here: https://t.co/ovGheRg4MQ https://t.co/ZEQSYktj0w
  • What is your #tradingstyle? Take the quiz and let us know: https://t.co/LPBOcS0Vtd https://t.co/l6FvtcADEH
USD/JPY Sits at Channel Support; RSI Hovers Above Oversold Territory

USD/JPY Sits at Channel Support; RSI Hovers Above Oversold Territory

2017-03-28 15:38:00
David Song, Currency Strategist
Share:

Talking Points:

- USD/JPY Sits at Channel Support; RSI Hovers Above Oversold Territory.

- GBP/USD Struggles to Test 2017 High Ahead of ‘Brexit’ Trigger, U.K. Mortgage Applications.

DailyFX Table

Currency

Last

High

Low

Daily Change (pip)

Daily Range (pip)

USD/JPY

110.38

110.83

110.18

28

65

USD/JPY Daily

USD/JPY Daily Chart

Chart - Created Using Trading View

  • The near-term outlook for USD/JPY remains tilted to the downside as the pair extends the series of lower-highs from earlier this month; the recent strength in the Japanese Yen has been largely accompanied by a decline in risk sentiment, with the Nikkei (JPN225) sitting near the monthly low (18,867) heading into Japan’s 2016 fiscal year-end.
  • However, the Relative Strength Index (RSI) may highlight a near-term exhaustion as it continues to hover above 30 and struggles to push into oversold territory; a turn in the momentum indicator may foreshadow a rebound in the exchange rate.
  • With Fed Chair Janet Yellen scheduled to speak later today, the fresh comments may sway the USD/JPY exchange rate as officials continue to project three to four rate-hikes for 2017, and the greenback may trade on a firmer footing should the central bank head show a greater willingness to raise the benchmark interest rate sooner rather than later.
  • Nevertheless, interest rate expectations have narrowed since the March meeting, with Fed Fund Futures now pricing a less than 50% probability for a June rate-hike, and the recent developments in the exchange rate may indicate a broader shift in market behavior as Fed officials continue to project a terminal fed funds rate close to 3.00%.
  • In turn, a break/closes below the Fibonacci overlap around 109.40 (50% retracement) to 109.90 (78.6% expansion) opens up the next region of interest around 108.30 (61.8% retracement) to 108.40 (100% expansion); would also like to see the RSI mark the first oversold reading since June for confirmation/conviction.

Currency

Last

High

Low

Daily Change (pip)

Daily Range (pip)

GBP/USD

1.2514

1.2596

1.2504

45

92

GBP/USD Daily

GBP/USD Daily Chart

Chart - Created Using Trading View

  • GBP/USD appears to have made a failed run at the 2017 high (1.2706), with the British Pound at risk of facing further losses over the next 24-hours of trade as the U.K. starts its process of departing from the European Union (EU); the pulls back from trendline resistance may open up the range from earlier this year especially as U.K. Mortgage Approvals are expected to downtick in February.
  • Nevertheless, the Bank of England (BoE) looks poised to retain the current policy at the next meeting on May 11 as Governor Mark Carney and Co. persistently warn ‘there are limits to the extent that above-target inflation can be tolerated,’ and the central bank may make further attempts to buy more time as Prime Minister Theresa May begins the negotiation process.
  • Failure to test the Fibonacci overlap around 1.2630 (38.2% expansion) to 1.2680 (50% retracement) shifts the near-term outlook, with a break/close below 1.2460 (61.8% expansion) to 1.2490 (38.2% retracement) opening up the next downside hurdle around 1.2370 (50% retracement) followed by 1.2270 (23.6% retracement).

For More Updates, Join DailyFX Currency Analyst David Song for LIVE Analysis!

Click HERE for the Entire DailyFX Webinar schedule.

DailyFX Calendar

Click Here for the DailyFX Calendar

If you’re looking for trading ideas, check out our Trading Guides.

Read More:

Gold Prices Recover Entire March Decline – FOMC, US GDP in Focus

EUR/USD – Will it Vote Yes or No on a Breakout?

FTSE 100 Dropping into Trend Support, but Will It Hold?

Crude Oil Price Forecast: Bearish Evidence Is Gathering Steam

--- 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.

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

DISCLOSURES

News & Analysis at your fingertips.