By Orbex
USDJPY about to test resistance
The Japanese yen weakened after a lower-than-expected Tokyo CPI in August. The US dollar is grinding its way back up after the mid-month correction.
A double test at 109.50 suggests strong buying interest. Layers of support indicate buyers’ willingness to pay up, the freshest one is at 109.90.
Momentum has slowed down as the price approaches the major supply area around 110.40. A bullish breakout would tip the balance to the long side again and open up the path to the psychological price tag of 111.00.
AUDUSD rebound cools off
Free Reports:
Get our Weekly Commitment of Traders Reports - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.
Sign Up for Our Stock Market Newsletter – Get updated on News, Charts & Rankings of Public Companies when you join our Stocks Newsletter
The Australian dollar fell back after a drop in July’s retail sales numbers.
A close above 0.7270 has forced sellers to cover their bets. The pair is recovering towards the 30-day moving average on the daily chart which coincides with the support-turned-resistance at 0.7320.
However, the rebound is likely to be choppy. After a double top in the overbought area, the RSI’s divergence indicates a loss in the rebound momentum.
A drop below 0.7235 would lead to a deeper correction to 0.7150.
US 30 recoups previous losses
The Dow Jones index pulls back as traders await updates from the Fed’s Jackson Hole meeting.
Price action’s V-shaped rebound is typical of buying-the-dips from the demand zone near 34600. By lifting offers around 35450 the bulls have signaled their commitment to maintaining the uptrend in the medium-term.
The index is seeking support after it erased losses from last week. 35200 is the first support as the RSI dips into the oversold territory.
A break above the peak at 35600 would extend the rally to new all-time highs.
By Orbex
- Oil prices remain volatile. The Reserve Bank of Australia signals further rate hikes May 19, 2026
- Gold Recovers Some Losses: What’s Driving the Market? May 19, 2026
- Economic activity in China is slowing. Silver has fallen by more than 8% May 18, 2026
- USD/JPY Rises for Sixth Straight Day: Yen Back on the Cusp of Intervention May 18, 2026
- Optimism surrounding the US-China summit in Beijing supported the markets May 15, 2026
- Gold Falls on US Inflation Concerns as Week Ends in Losses May 15, 2026
- The oil market may remain in a state of severe supply shortage until autumn May 14, 2026
- GBP/USD Under Policy Pressure: What Lies Ahead for the Prime Minister? May 14, 2026
- European stock markets declined amid rising concerns about an energy crisis May 13, 2026
- USD/JPY Continues to Climb Amid External and Domestic Pressures May 13, 2026
