Forex Trading Library

Intraday Analysis – JPY Hoping to Bounce Back

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USDJPY corrects from recent peak
The JPY Chart: USDJPY correction with support at 156.80 and resistance near 157.50.

The JPY remained subdued after the BoJ kept its policy unchanged. The double bottom at 155.60 has seen a continuous bullish drive, and the 200-pip push has kept buyers in the driving seat. May’s swing high of 157.50 is the closest hurdle, as the RSI’s double top in the overbought area could temper the bullish fever with a limited pullback. 156.80 is fresh support, and 156.00 over the 20-day SMA significantly maintains the bullish bias.

EURGBP continues the runaway gap
EURGBP Chart: EURGBP gap, resistance at 0.8450, and potential bearish continuation.

The pound advances as traders expect the Bank of England to final signal their first rate cut. On the chart, the pair is still licking its wounds after touching 0.8400. A rebound seems to have stopped at 0.8450, suggesting that bears could sell into strength as sentiment remains downbeat. A break above this resistance would open the door to a meaningful recovery. Until then, 0.8470 is the next level to see if the recent gap can be filled with heavy resistance at 0.8500 to break.

GER 40 grinds higher
GER 40 Chart: GER 40 downtrend, support at 17900, and resistance around 18300.

The Dax edged lower as the sell-off continued on the index. The rally gained traction after it closed below the recent support of 18300. This is a strong indication of the underlying bearish mood. A brief pullback has seen a few points put on the board, but the overall rhetoric sees the Dax being heavily pressured. 17900 is the next obstacle for bears to lift, and a drop below 17550 would send the index to the psychological level of 17000, next to the 30-day SMA.

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