By Mexgroup.com
USD/JPY Additional Drop Expected
The currency pair has dropped significantly in the morning and seems too heavy to be stopped on the short term. USD is going down versus all its rivals as the dollar index is under massive selling pressure. The index could approach and reach the nxt downside target from the 91.91 static support, we’ll see how will react after will hit this level.
The 91.91 level represents a crucial support, a valid breakdown will confirm a medium term drop and a USD’s massive depreciation versus all its rivals. The Japanese Yen rallied on the mixed economic data, the Household Spending dropped by 0.2% in the previous month, even if the economists have expected to see a 0.8% growth. Moreover the Unemployment Rate remains steady at 2.8% for the second month in July, matching expectations.
The price should drop further after the retest of the minor red uptrend line, the next downside target will be at the 108.13 horizontal support. Technically is expected to drop much deeper after the failure to stabilize above the second warning line (wl2) of the descending pitchfork. You can see that has retested the wl2, signaling a further decrease. The next major downside target will be at the first warning line (wl1), will approach it only if the Nikkei stock index will slide further.
GBP/USD Bulls On The Run
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GBP/USD rallied after the retest of the 1.2775 horizontal support and now is pressuring the 150% Fibonacci line (ascending dotted line). Remains to see if we’ll have a valid breakout or not, but you need to know that the perspective is bullish on the short, should reach at least the 50% Fibonacci line.
Could be attracted by the confluence between the 150% line with the 50% line. Will climb much higher if the USDX will slide further.
USD/CAD Another Leg Higher?
USD/CAD decreased again in the last hours and erased the early morning gains, could come back down to retest the 1.2460 static support. I’ve drawn an ascending pitchfork hoping that I’ll catch another leg higher. Price has come down and retested the lower median line (LML) and closed much above it, signaling a rebound. Only a valid breakdown below the LML will confirma further drop in the upcoming period.
By Olimpiu Tuns
Market Analyst
The post Daily Market Report – USD/JPY On The Way Down August 29, 2017 appeared first on mexgroupblog.
