DailyFX Table

Ticker

Last

High

Low

Daily Change (pip)

Daily Range (pip)

USD/JPY

112.74

112.87

112.33

19

54

USD/JPY may continue to give back rebound from the June-low (108.80) as market participants push back bets for the next Fed rate-hike.

The Bank of Japan’s (BoJ) July 20 meeting is likely to spark a limited reaction in USD/JPY as Governor Haruhiko Kuroda and Co. stick to the Quantitative/Qualitative Easing (QQE) Program with Yield-Curve Control, and narrowing bets for higher U.S. borrowing-costs may continue to drag on the dollar-yen exchange rate as Chair Janet Yellen warns ‘the federal funds rate would not have to rise all that much further to get to a neutral policy stance.’ With Fed Fund Futures pricing a 50% probability for a move in December, USD/JPY stands at risk of facing range-bound conditions over the near-term amid waning expectations for three rate-hikes in 2017.

USD/JPY Daily

USD/JPY Daily Chart

  • The failed attempt to close above the Fibonacci overlap around 113.80 (23.6% expansion) to 114.30 (23.6% retracement) keeps the near-term bias tilted to the downside, with USD/JPY at risk for further losses as the Relative Strength Index (RSI) highlights a bearish trigger and threatens the upward trend carried over from the previous month.
  • Waiting for a close below the 112.40 (61.8% retracement) hurdle to open up the monthly-low (112.08), with the next region of interest coming in around 111.10 (61.8% expansion) to 111.60 (38.2% retracement) followed by the Fibonacci overlap around 109.40 (50% retracement) to 109.90 (78.6% expansion).

    • Ticker

    Last

    High

    Low

    Daily Change (pip)

    Daily Range (pip)

    GBP/USD

    1.3059

    1.3117

    1.3051

    41

    66

    Print Friendly, PDF & Email

    Related Posts