Daily Market Report – USD/JPY Facing Tough Resistance October 06, 2017

USD/JPY Needs A Spark

Price increased little today and stays above the 112.91 yesterday’s high, but is trapped below an important dynamic resistance on the short term. Price changed little in the last days, but I hope that the United States data will bring life on this pair. USD/JPY continues to move in range on the short term, so only a valid breakout from this range will bring us a clear direction and a great trading opportunity. Price increased as the USDX has managed to climb above the 94.00 psychological level, while the Nikkei increased further and punished the Yen.

The JP225 is at new highs and is expected to climb towards new peaks, this situation will force the Yen to depreciate. The index could drop on the short term only if the USDX will take a hit from the US data.

Price is pressuring the median line (ml) of the ascending pitchfork, but remains to see if will have enough directional energy to take this out. The USD/JPY could become strongly bullish on the short term if the US data will come in better than expected. Technically, it was somehow expected to drop after the several false breakouts above the median line (ml) and above the warning line (wl1), but the Nikkei’s increase has invalidated a minor correction.

However, a disappointment later will bring the sellers again in the market, which will send the rate tumbling.

USD/CHF Breakout Needs Confirmation

USD/CHF is still trading in the green on the daily chart and seems poised to reach new peaks in the upcoming period. Price is pressuring the outside sliding line (SL) of the descending pitchfork, only a valid breakout above this level and above the 0.9787 static resistance wil confirm a further increase. A minor consolidation could bring us a great trading opportunity, even if the rate will stay below the median line (ml) of the ascending pitchfork.

USD/CAD Finally In The Buyers Territory

Price increased sharply in the yesterday’s trading session as the US data have come in better than expected. USD/CAD has finally escaped from the minor descending pitchfork’s body and seems poised for another challenge.

The breakout needs confirmation, it could come to retest the upper median line (uml) of the descending pitchfork before will resume the upside movement. A minor decrease could expected after the upside movement.

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.

Risk Disclaimer:

Trading, in general, is very risky and is not suited for everyone. There is always a chance of losing some or all of your initial investment/deposit, so do not invest money you can’t afford to lose. You are strongly advised to carry out your independent research before making any trading decisions. All the analysis, market reports posted on this site are only educational and do not constitute an investment advice or recommendation to open or close positions on international financial markets. The author is not responsible for any loss of profit or damage which may arise from transactions made based on any information on this website.

The post Daily Market Report – USD/JPY Facing Tough Resistance October 06, 2017 appeared first on mexgroupblog.

Source:: Daily Market Report – USD/JPY Facing Tough Resistance October 06, 2017