Forex Trading Library

Intraday Market Analysis – JPY Loses Steam

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AUDUSD holds steady

The Australian dollar consolidates as the RBA minutes argue for smaller hikes amid cooling house prices. On the daily chart, a bullish MA cross following a break above 0.6500 is a sign that sentiment could be turning around. But traders could be reluctant to chase after high bids near 0.6730. The RSI’s repeatedly overbought condition may cause a pullback should buyers start to take profit. 0.6580 is the first level to expect buying interest and the zone around 0.6450 a major level to keep the rally from last week valid.

EURJPY bounces back

The Japanese yen softened after BoJ Governor Kuroda said the central bank would stick to monetary easing. The recent wild swing has shaken out short-term positions and the price could go sideways to let the dust settle. From the medium-term perspective, the uptrend would remain intact as long as the euro is above 141.00. A bounce off 143.00 at the base of a previous bullish breakout shows that the bulls have bought the dip. A close above 145.00 might lead to 147.00, a key hurdle to lift before the uptrend could resume.

GER 40 may take breather

Equities stayed flat as Fed Governor Waller said the market may have got ahead of itself. A rally above the August high of 13970 has put the bears on the defensive. The Dax 40 is grinding towards last June’s peak and a major supply zone between 14500 and 14700. A bullish breakout could rekindle the optimism in the medium-term. But the RSI’s overextension may cause a limited retracement, which could be seen by the bulls as an opportunity to buy cheap. The psychological level of 14000 would be the first support.

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