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
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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
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