somrat4030
Well-known member
Forex Forum, Forex trading news
USD/JPY has been capped at the 2018 highs at 114.55 as suspected and a pullback is seen underway. With a major base seen in place, weakness stays seen as corrective only ahead of an eventual break in due course for 117.12, economists at Credit Suisse report.
With a major base in place above the 112.40 high of 2019, we maintain our view that weakness will be corrective and temporary only. A clear break of 113.99 should mark a near-term top to add weight to our view for a setback to 113.81/61 initially, with fresh buyers expected here for now. A break can see a deeper retreat towards 113.08/04 but this will ideally prove the limit of the downturn.”
“Resistance is seen at 114.36 initially. Above 114.45/55 can quickly reassert the uptrend for the 114.73 high of November 2017 next ahead of the 78.6% retracement of the December 2016/March 2020 fall at 114.92 and then 117.12 in due course, the long-term downtrend from April 1990.
On the other hand, The GBP/JPY cross added to its intraday gains and shot to the highest level since June 2016, around the 157.60 region during the first half of the European session.
Following the previous day's consolidative price moves, the GBP/JPY cross caught fresh bids on Tuesday and resumed its strong bullish momentum witnessed since the beginning of this month. This marked the ninth day of a positive move in the previous ten and was supported by a combination of factors.
The British pound was underpinned by the recent hawkish remarks from the Bank of England officials, signalling an imminent interest rate hike later this year. In fact, the BoE Governor Andrew Bailey said that the UK central bank will have to act amid increasing risks to medium-term inflation expectations.
USD/JPY has been capped at the 2018 highs at 114.55 as suspected and a pullback is seen underway. With a major base seen in place, weakness stays seen as corrective only ahead of an eventual break in due course for 117.12, economists at Credit Suisse report.
With a major base in place above the 112.40 high of 2019, we maintain our view that weakness will be corrective and temporary only. A clear break of 113.99 should mark a near-term top to add weight to our view for a setback to 113.81/61 initially, with fresh buyers expected here for now. A break can see a deeper retreat towards 113.08/04 but this will ideally prove the limit of the downturn.”
“Resistance is seen at 114.36 initially. Above 114.45/55 can quickly reassert the uptrend for the 114.73 high of November 2017 next ahead of the 78.6% retracement of the December 2016/March 2020 fall at 114.92 and then 117.12 in due course, the long-term downtrend from April 1990.
On the other hand, The GBP/JPY cross added to its intraday gains and shot to the highest level since June 2016, around the 157.60 region during the first half of the European session.
Following the previous day's consolidative price moves, the GBP/JPY cross caught fresh bids on Tuesday and resumed its strong bullish momentum witnessed since the beginning of this month. This marked the ninth day of a positive move in the previous ten and was supported by a combination of factors.
The British pound was underpinned by the recent hawkish remarks from the Bank of England officials, signalling an imminent interest rate hike later this year. In fact, the BoE Governor Andrew Bailey said that the UK central bank will have to act amid increasing risks to medium-term inflation expectations.
