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
GBP/USD
Mixed
USD/JPY
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
Bearish
Oil - US Crude
Mixed
Bitcoin
Bearish
More View more
Real Time News
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.81%, while traders in USD/CAD are at opposite extremes with 70.99%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/gycgoR3uaf
  • RT @charliebilello: Volatility Index: +47% today, 7th largest 1-day spike w/ data going back to 1990. $VIX https://t.co/oqnst05BNi
  • RT @LiveSquawk: Fed's Mester: Economic Impact Of Coronavirus Outbreak Depends On How Deep And Long-Lasting It Is
  • US equity close: $SPX -110 (-3.3%) $DJI -1031 (-3.6%) $NDX -355 (-3.7%)
  • RT @ClevelandFed: #LorettaMester: My current view is that monetary policy is well-calibrated to support our dual mandate goals, and a patie…
  • RT @PowerLunch: Restrictions in China are still tight as the country faces the Coronavirus. @onlyyoontv tells us more about authorities co…
  • Well, that was not a very encouraging day for capital markets. Remember, flat is also an option in the markets
  • Indices Update: As of 21:00, these are your best and worst performers based on the London trading schedule: Wall Street: 0.02% US 500: 0.01% Germany 30: -0.45% France 40: -0.52% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/JkDZ0UQlwb
  • Gold prices have remained bid for much of the past two weeks, and of recent, as that risk aversion theme has further priced-in to global markets. Get your $XAUUSD technical analysis from @JStanleyFX here: https://t.co/ylBpk8vHvX https://t.co/mRbft4222q
  • #Crypto update: $BTC -2.9% $BCH -6.3% $LTC -5.5% $XRP -4.9% $ETH -3.2%
Dollar Pares Gains as Markets Brace For Greek Default- Yen Advances

Dollar Pares Gains as Markets Brace For Greek Default- Yen Advances

2011-09-13 14:53:00
Michael Boutros, Technical Strategist
Share:

Daily Winners and Losers

Dollar_Pares_Gains_as_Markets_Brace_For_Greek_Default-_Yen_Advances_body_Picture_2.png, Dollar Pares Gains as Markets Brace For Greek Default- Yen AdvancesDollar_Pares_Gains_as_Markets_Brace_For_Greek_Default-_Yen_Advances_body_Picture_3.png, Dollar Pares Gains as Markets Brace For Greek Default- Yen AdvancesDollar_Pares_Gains_as_Markets_Brace_For_Greek_Default-_Yen_Advances_body_Picture_4.png, Dollar Pares Gains as Markets Brace For Greek Default- Yen Advances

The yen is the top performer against a weaker greenback an hour into North American trade with an advance of 0.48%. Concerns that Greece may be nearing default and rising borrowing costs at Italy’s bond auction today continue to weigh on the risk appetite despite gains in equities. The yen remains the beneficiary of haven flows for investors seeking “safety” amid the ongoing turmoil in Europe. The USD/JPY pair broke back below the 61.8% Fibonacci extension taken from the July 8th and August 4th crests at the 77-handle before tagging interim support at the 76.80 mark. A break here eyes downside targets at 76.60, 76.40, and the 76.4% Fibonacci extension at 76.25. Topside resistance holds at the figure and is backed by 77.40, the 50% extension at 77.60 and 77.85. Traders will be eyeing data out of Japan with industrial production and machine tool orders on tap overnight.

Key Levels/Indicators

Level/Indicator

Level

50-Day SMA

77.75

20-Day SMA

76.94

10-Day SMA

77.11

2011 JPY High

75.94

Dollar_Pares_Gains_as_Markets_Brace_For_Greek_Default-_Yen_Advances_body_Picture_5.png, Dollar Pares Gains as Markets Brace For Greek Default- Yen AdvancesDollar_Pares_Gains_as_Markets_Brace_For_Greek_Default-_Yen_Advances_body_Picture_6.png, Dollar Pares Gains as Markets Brace For Greek Default- Yen Advances

The sterling was the weakest of the majors at the open, sliding more than 0.2% against the dollar. Weaker than expected UK data overnight suggests the need for additional stimulus after the July trade balance showed the deficit increased to -8.92Billion pounds, missing calls for a read of -8.5B pounds. The pound continues to hold its recent range between interim support at 1.5775 and the 76.4% Fibonacci extension taken from the April 27th and August 19th crests at 1.5880. It’s likely the sterling will continue to see sideways price action with a break below 1.5775 eyeing interim targets at 1.5730, the 1.57-figure, and the 100% Fibonacci extension at 1.5650. A breach above topside resistance sees subsequent ceilings at 1.5930, 1.5990, and the 61.8% extension at the 1.60-handle. Investors will be closely eyeing UK data overnight with jobless claims and the ILO unemployment rate on tap.

Key Levels/Indicators

Level/Indicator

Level

50-Day SMA

1.6222

20-Day SMA

1.6220

10-Day SMA

1.6022

2011 GBP High

1.6745

Written by Michael Boutros, Currency Analyst for DailyFX.com

To contact the author of this report or receive his daily reports, please send inquiries to:mboutros@dailyfx.com

You can also follow Michael on Twitter @MBForex.

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

DISCLOSURES

News & Analysis at your fingertips.