Forex Trading Library

Intraday Analysis – JPY loses momentum

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USDJPY recoups some losses

The Japanese yen weakened after the BoJ kept its dovish policy guidance. On the daily chart, the pair is still in a recovery mode after coming off a 12-month high of 152.00. The rebound is now taking on its first hurdle at 146.00 near the previous swing high and next to the 20-day SMA. A bullish breakout would prompt a few sellers to trim their bets, easing the downward pressure. As the RSI ventured again in the overbought area, a pullback might be due and 142.50 would be the first level to maintain the current momentum.

USDCAD struggles to bounce

The Canadian dollar advanced after the CPI beat estimates last month. A slide below September’s low of 1.3450 has further put the bulls on the defensive in the medium-term. An oversold RSI on the hourly may attract some bargain hunters. 1.3450 has turned into a fresh resistance where cautious sentiment may lead sellers to double down. Those looking for a sustained rebound will need to see 1.3590 lifted before a U-turn could be confirmed. Otherwise, the price may continue to struggle beyond 1.3220.

UK 100 consolidates gains

The FTSE 100 inched higher as commodity prices rose amid growing hopes of interest rate cuts. A jump above last October’s peak of 7700 might have put the index back on track after a lengthy correction. 7540 at the confluence of the base of the bullish breakout and the 20-day SMA saw renewed interests and is an important level to keep the upbeat bias intact in the short-term. The three-month high of 7740 could be the bears’ last stronghold and its breach may trigger an extension to the psychological level of 8000.

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