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
Bullish
Wall Street
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
Gold
Bearish
GBP/USD
Bullish
USD/JPY
Bearish
More View more
Real Time News
  • Why financial market traders must monitor both monetary and fiscal policy? Find out from @MartinSEssex here:https://t.co/Fkzk88Y5gm https://t.co/beKjEODs2y
  • RT @RichDvorakFX: @Investingcom Seems to me like investors ‘high’ on central bank liquidity are fiending for more and staring down the edge…
  • Get your snapshot update of the of relative currency strength and exchange status from around the globe here: https://t.co/DmhBkd4B0k https://t.co/b8RNJQKE1m
  • The Spinning Top candlestick pattern forms part of the vast Japanese candlestick repertoire with its own distinct features. Gain a better understanding of the spinning top candlestick here: https://t.co/yXomAftdv8 https://t.co/wOQAHZVnxB
  • Forex trading, which is the act of exchanging fiat currencies, is thought to be centuries old – dating back to the Babylonian period. Learn about the history of Forex here:https://t.co/ePTJlbUP7c https://t.co/WS2LkCt9gX
  • Two major events will dominate #Euro trading in the coming week: an #ECB meeting on Eurozone monetary policy, followed by an #EU summit to reach agreement on a recovery fund. Get your #currencies update from @MartinSEssex here: https://t.co/wnXjTDizMv https://t.co/tmxDfkgmSv
  • There are many different types of forex orders, which traders use to manage their trades. While these may vary between different brokers, there tends to be several basic FX order types all brokers accept. Learn about different FX order types here: https://t.co/lIJdiz4xSz https://t.co/UQRaKusFP7
  • The continuity seen across these volatility cycles is a good thing. Historical precedence offer a blueprint for identifying conditions supportive for a vol-event to occur, and how they may unfold. Deepen your knowledge of historical volatility here:https://t.co/vg7w10la3j https://t.co/nUvvI3WQpx
  • Australian Dollar is up fractionally this week with Aussie stalling just below the yearly range highs. Here are the levels that matter on the $AUDUSD technical chart. Get your #currencies update from @MBForex here: https://t.co/jYzBK1qH4s https://t.co/gYj4tFbsGS
  • What is the road ahead for equities this coming week? Check out my fundamental outlook below! #DowJones #SP500 #DAX30 #FTSE100 https://www.dailyfx.com/forex/fundamental/forecast/weekly/title/2020/07/11/Dow-Jones-SP-500-DAX-30-FTSE-100-Outlook-Stocks-Week-Ahead.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/HjIBDKqwvO
Yen Counteroffensive to be Short Lived- Euro Ascending Channel Intact

Yen Counteroffensive to be Short Lived- Euro Ascending Channel Intact

2012-02-27 16:25:00
Michael Boutros, Strategist
Share:

Daily Winners and Losers

Yen_Counteroffensive_to_be_Short_Lived-_Euro_Ascending_Channel_Intact_body_Picture_6.png, Yen Counteroffensive to be Short Lived- Euro Ascending Channel IntactYen_Counteroffensive_to_be_Short_Lived-_Euro_Ascending_Channel_Intact_body_Picture_5.png, Yen Counteroffensive to be Short Lived- Euro Ascending Channel IntactYen_Counteroffensive_to_be_Short_Lived-_Euro_Ascending_Channel_Intact_body_Picture_4.png, Yen Counteroffensive to be Short Lived- Euro Ascending Channel Intact

The Japanese yen is the highest performing currency against a stronger greenback in early US trade with the USD/JPY off by more than 1.1% on the session. Equity markets are in the red early in the week as investors continue to eye developments out of Europe with the ECB’s LTRO taking center stage this week. The central bank will offer its final 3year tender at fixed low rates to European banks looking to recapitalize amid ongoing concerns of a “mild recession” in the 17 nation bloc. The yen which has suffered massive losses since the February 2nd low went back on the offensive today pressuring the pair lower. While the pair is likely to remain under pressure in intra-day trade, we continue to favor the long side with pullbacks offering ideal entries off our support targets.

The USD/JPY has continued to trade within the confines of an ascending channel formation dating back to February 3rd with a break of channel support eyeing subsequent floors at the 100% Fibonacci extension taken from the October 30th and February 1st troughs at the 80-figure, 79.40, and the 78.6% extension at 79.13. Topside resistance stands with the 123.6% extension at 80.90 backed by the 138.2% extension at 81.50 and channel resistance. Look for the pair to continue its ascent later in the week with our medium-term outlook on the pair weighted to the topside.

Key Levels/Indicators

Level/Indicator

Level

200-Day SMA

78.01

100-Day SMA

77.44

50-Day SMA

77.61

2011 JPY High

75.50

Yen_Counteroffensive_to_be_Short_Lived-_Euro_Ascending_Channel_Intact_body_Picture_3.png, Yen Counteroffensive to be Short Lived- Euro Ascending Channel IntactYen_Counteroffensive_to_be_Short_Lived-_Euro_Ascending_Channel_Intact_body_Picture_2.png, Yen Counteroffensive to be Short Lived- Euro Ascending Channel Intact

The euro is the weakest performer at 10am in New York with the euro off by more than 0.40% on the session. From a daily standpoint the euro continues to hold within the confines of an ascending Elliot channel formation with a key daily close above the 78.6% Fibonacci extension taken from the October 4th and February 13th troughs at 1.3480 needed to dispel further short-term losses for the single currency. Crucial support holds at the confluence of the 61.8% extension, the 100-day moving average, and former trendline support dating back to the January 10th 2011 lows at the 1.33-figure.

Yen_Counteroffensive_to_be_Short_Lived-_Euro_Ascending_Channel_Intact_body_Picture_1.png, Yen Counteroffensive to be Short Lived- Euro Ascending Channel Intact

The euro scalp chart highlights topside resistance targets at 1.3420, the 161.8% Fibonacci extension taken from the February 6th and 16th troughs at 1.3450 and the 2012 highs put in on Friday around 1.3480. The pair briefly broke below the 138.2% extension at 1.3380 before pullback back towards the 1.364-figure in early US trade. A break below this level eyes soft support at 1.3360 backed by the 123.6% extension at 1.3335 and the 1.33-figure. Our medium-term outlook for the euro remains weighted to the topside with pullbacks offering favorable long entries with a test of daily trendline resistance dating back to August 29th at 1.3550 likely in days to come.

Key Levels/Indicators

Level/Indicator

Level

200-Day SMA

1.3726

100-Day SMA

1.3304

50-Day SMA

1.3047

2011 JPY High

1.4939

---Written by Michael Boutros, Currency Strategist with DailyFX.com

Join Michael Tomorrow morning for a Live Scalping Webinar at 1330GMT (8:30ET)

To contact Michael email mboutros@dailyfx.com or follow him on Twitter @MBForex

To be added to Michael’s distribution list, send an email with the subject line “Distribution List”

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

DISCLOSURES

News & Analysis at your fingertips.