USDJPY (The yen) halts the upturn
USDJPY (The yen) bounced against the dollar after finding resistance at the 162.75 level.
• The latest move above 162.50 has prompted some buyers to cover and could pave the way for a bearish continuation.
• A move below 162.00 would confirm the downward skew and attract more bears in the hope of a further extension.
• 161.60 is the next target lower, which could again test the firm double bottom at 160.80.
NZDUSD propels higher
The New Zealand dollar kept its composure after jumping over 100 pips in yesterday’s session.
• The pair moved higher as the recent greenback sell-off signalled an ongoing rhetoric that the Fed will cut rates soon.
• 0.5700 is the closest support to see if there is any renewed interest in the greenback.
• On the flip side, a break above 0.5780 would give the Kiwi an extension, for a charge towards the recent peak at 0.5860.
US30 finds support
The Dow remains buoyant as prices attempt to recover as many losses as possible.
• Since a confirmation bounce around 52200, a slight increase in value followed by stiff consolidation has seen a top at 52600.
• A move past the said price will provide the next bullish signal as buyers hope for a test back towards 53000.
• On the downside, 52200 is firm support, and 52000 is the bulls’ second layer of defence.
