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USD/JPY consolidates 12-day gains

FXstreet.com (Chicago) - USD/JPY remains strong amid speculations on Fed tapering despite stock markets declines.

Price action indicates the pair maintains 12-day gains to trade at 98.16 after bullish spike triggered yesterday. So far, the pair drops 0.01% to navigate between supports at 97.81 (June 26th lows), 97.51 (June 20th highs) ahead of 97.16 (June 25th lows) and resistances at 98.45 (July 27th highs), 98.69 (June 21st highs) followed by 99.00 (July 16th lows). According to the FXstreet.com trend index, the pair is slightly bearish on one-hour timeframe analysis.

According to the ICN technical analysis, “The tight trading range of the pair during the European session represents its failure to respond to the negativity showing on Stochastic. Linear Regression Indicators are facing an upside move forcing us to think that further bullishness might occur during the U.S. session today. The pair has to breach 98.60 levels to accelerate the upside move.”

US Dollar Index in red around 81.70

The US Dollar Index, which tracks the world’s reserve against its major competitors, is posting marginal losses after three straight days of advances, hovering over the 81.70/75 region....
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Flash: GBP/USD a hot buy this week – BMO Capital markets

For the GBP, at this stage FX market participants appear to be looking for something to buy other than the USD, and the general skew seems to be that the better UK data provide the opportunity to do so, notes Greg Anderson at BMO Capital Markets.
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