USD/JPY Still Undecided
Price continues to move in range on the Daily chart despite the USDX’s significant move on Friday. It seems undecided as the Nikkei stock index moves in range as well on the Daily chart. Personally I believe that we’ll have a significant move very soon, a further drop is somehow expected after a crucial breakdown.
It will reach fresh new lows if the JP225 will slide further as well, the index is moving sideways on the short term, remains to see if this will be a distribution movement.
The Yen decreased a little only because the Nikkei stock index failed to close below the 19309 low.Technically, the Nikkei maintains a bearish perspective after the failure to stabilize above the 19700 major static resistance.
USD/JPY should drop further as the USD is punished by the USDX’s drop, the United States data have come in mixed today and failed to save it from downside. The US Prelim Wholesale Inventories rose by 0.4% in the previous month, beating the 0.3% estimate, but unfortunately, the Goods Trade Balance decreased from -64.0B to -65.1B, versus the -64.5 estimate.
Price increased a little today and has retested the 50% retracement level and now should drop much deeper, the next downside target will be at the 61.8% retracement level. Personally, I believe that only the fundamental factors could turn it to the upside again.
USD/CAD Bounce Back?
Price posted significant gains in the last hours as the Oil drops aggressively. USD/CAD is trading in the green right now, has erased the earlier losses, but we still need a confirmation that will start another leg higher in the upcoming period. Only a minor accumulation will signal a reversal on the short term.
It is trying to climb above the median line (ml) again, a retest of the LML of the major black ascending pitchfork will signal a broader increase.
Brent Oil Seems Unstoppable
Price drops sharply after another failure to reach the and retest the 53.03 static resistance. Is pressuring the downside line of the minor ascending channel, a valid breakdown is favored. I’ve said in a previous report that we may see another leg lower in the upcoming weeks, could drop much below the $50.0 per barrel. The next important downside target will be at the 38.2% retracement level.
By Olimpiu Tuns
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