Possible Turn Back for the USDJPY
After brewing into the bearish trend channel for the past few days, the USDJPY pair is now anticipated to consolidate between the resistance level at 83.82 and support level at 83.39. The simple MA (14) at H1 time frame, along with the price, is now heading towards the uptrend channel while the MACD (12, 26, 9) of the 4-hour chart is still showing signs of consolidation at the moment, as the signal line closes its gap with the MACD line. On the other hand, despite having visible signs of bullish proposal, noticeable motion of the RSI (14) is still seen to be on a neutral level at the M30 price chart. Currently, traders in a buying bias could assume a potential gain in the successive events, with these indications of bullishness in the market.
American Session Outlook
The US Dollar showed relative strength against its major counterparts during yesterday’s trading. Noteworthy of it was the two-month high against Euro, as risk averse in the Euro Zone continues. Also, Canadian Dollar showed relative strength against GBP, AUD and EUR.
For today’s American session, the Loonie is expected to consolidate its gain against the Fiber, Sterling and Aussie. With no major economic indicator from Canada and no signs yet of much confidence in UK and Euro region, the Loonie is expected to hold its strength. On the other hand, the Loonie might relatively weaken due to a negative correlation with the black crack’s price, expected to continuously drop this holiday season. But any intervention from Bank of Canada through open market operations and bank rate adjustment may cause strong impact and unexpected reversal.
As for the Greenback, holiday season continues to nurture its relative strength against the Fiber, Sterling and Yen. The ADP Non-Farm Employment Change, which is expected to be released later, may increase by 27K signifying a boost in consumer spending that generally accounts for the overall economic activity.
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