USD/JPY: Nonfarm Payrolls could be the catalyst

FXStreet (Guatemala) - USD/JPY is currently trading at 124.38 with a high of 124.41 and a low of 124.20.

USD/JPY is starting out in Tokyo just as choppy as the major has been been ever since landing on the 124 handle on the 27th May. The unit is opening with bullish intentions but is yet to make a break of the resistance set in place from the 124.20 minor recovery and support of 124.67's downtrend overnight.

There was not much to bite on which was driving the major data wise while markets remain fixated on the comings and goings and ever changing mood around on going Greek negotiations. There had been some optimism that the Greeks would meet their deadline payment tomorrow, but that has been pushed back and just earlier and recently Greece's Tsipras, Germany's Merkel as well as France's Hollande were coming off a conference call which the jungle drums have said to have been pretty constructive while Tsipras was reported saying that he is optimistic on a deal.

Meanwhile, there will be something other than Greece on everyone's map to close the week and that of course comes in the Nonfarm Payrolls tonight in the US session which could be the catalyst for either a surge higher to extend the new highs or to put the dollar right in its place on anything bearish in the report on US jobs and wages.

Technically, a break of 123 would be a major achievement for the bears while otherwise it has been sighted as a buying opportunity by the bulls and optimists for higher grounds yet. Karen Jones, chief analyst at Commerzbank explained that a break below 123.00 would bring 122.40 as next support but she said key support is considered to be the 5 month uptrend at 119.20 and while above here we remain bullish. The bulls next target comes at the Dec 125.60 2002 highs.

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Analysts at Bank of Tokyo-Mitsubishi UFJ, Ltd. explained that there is still not too much to drive a break out of the recent narrow ranges in USD/CNY.
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EUR/USD: Watch year-long trendline at 1.1393 - BofA

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