By Mexgroup.com
USD/JPY Struggling To Stay Higher
The USD/JPY increased on Tuesday, but failed to reach the 113.25 last week’s high. Continues to pressure the median line (ml) of the blue ascending pitchfork. Technically, has shown some exhaustion signs in the last days after the failure to take out a major dynamic resistance.
Price increased in the last three days as the Yen was punished by the Nikkei’s impressive rally, it should have climbed much higher today as the index has jumped above the 20498 previous high and reached the 20636 level. The USD/JPY upside momentum was paused by the USDX’s decrease, the index has found strong resistance right above the 93.81 horizontal resistance and now is trading much below this major upside obstacle. USDX maintains a bullish perspective on the short term, but only a valid breakout above the 93.81 will confirm a further increase in the upcoming weeks.
Price is pressuring the median line (ml) of the ascending pitchfork, another false breakout will send the price towards fresh new lows in the upcoming days. Only a valid breakout above this obstacle could confirm a further increase towards the 23.6% retracement level.
A USDX’s drop could signal a Nikkei’s minor decrease as well, we’ll see what will happen because tomorrow we have a crucial day for the USD. The US is to release high-impact data, while the FED Chair Yellen will deliver a speech at the Federal Reserve Bank of St. Louis.
Free Reports:
NZD/USD Break Or Bounce?
Price dropped further and is almost to hit the fifth warning line (wl5) of the ascending pitchfork. Technically, it should take out this dynamic support after the retest of the sliding line (SL), but only if the USDX will climb higher after the Tuesday’s indecision. A valid breakdown will signal a further drop towards the second warning line (WL2) of the descending pitchfork.
EUR/GBP Further Increase Possible
EUR/GBP increased further and is almost to hit the third warning line (wl3), where he could find resistance again. I’ve drawn a minor ascending pitchfork to catch a potential upside movement. You can see that was attracted by the confluence area formed between the wl3 with the median line of the minor ascending pitchfork. It could increase even if will stay below the median line of the minor pitchfork, but only if will take out the wl3 resistance.
By Olimpiu Tuns – Market Analyst
I graduated a Master in Business Administration, I am a Market Analyst / Trader on Financial Markets (forex, commodities, futures, options) for more than 6 years, I use technical and fundamental analysis for my daily activity. Founder and Market Analyst at ovtbusiness.com (Financial Markets Blog) and contributor on investing.com, actionforex.com, countingpips.com, forexalchemy.com, etc.
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The post Daily Market Report – USD/JPY Facing Tough Resistance October 04, 2017 appeared first on mexgroupblog.
