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USD/JPY AS EXPECTED MOVED UP. Unfortunately, the price moved very swiftly and I wasn’t able to catch this one. Weekly momentum is fully oversold and there is a lot of potential to the upside. Next opportunity to longs lies at 110.25 support with stops below the recent low at 108.00. Targets could be set to 112.60 – the next logical resistance.
The current 1.0890 area is a strong resistance. This market respected it few time before and it is likely to do the same once again. The weekly momentum is oversold suggesting upside but it is conflicting with the shorter term stochastics, which shows some correction to the downside is possible
Weekly momentum confirms the bottom is very likely in place and this market will be pushing higher in the coming days. I expect USDJPY to form a local high around 110 area and retrace back to 109. A of today ( given no other information at hand ) I will be looking to establish long positions around 109.50 -109.00.
EURUSD gave up some the yesterday’s gains and finished the day at 1.0710. The pair is clearly awaiting French elections. France is a significant part of Eurozone and any threat to its integrity from elected leaders would have serious consequences in the FX market. I expect there will be very little going on in the price of EURUSD until we have a clear winner in France
May's speech was scheduled for 10:15 GMT but the first rumors had hit the market an hour earlier. Pound in a quarter of an hour lost about 70 pips which led to the short-lived panic of the bulls. When it became clear that May was announcing an early election pound fired up. From today's minimum to the maximum is about 390 pips. GBPUSD which has ended yesterday's session at 1.2560, now is above 1.28. We weren't so high since October 2016.
EURUSD lost almost all yesterday's gain in today's trading. The pair turned down from 1.0670 and closed the day at 1.0613.lower UK and German yields along with ongoing concerns about next weekend's French election put pressure on the euro. There were no surprises in German data as consumer price growth was confirmed at 0.2% for the month of March.
As expected Cable rallied from the lows and closed the day at the resistance just below 1.2500. As I mentioned yesterday, this level is a good short opportunity for bears but one must consider tomorrow's UK reports. It is likely that GBPUSD will be volatile. Its hard to know what to expect. Inflation figures trending higher but the Brexit still looms. The weekly momentum is still strongly overbought suggesting downside. I will be watching the resistance at 1.26 to sell this market again. Only a firm break above 1.2650 would suggest major sift in bearish sentiment in the short term. watch out tomorrow
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