Dollar keeps weaker to start the session

Technical Analysis

Author: Justin Low | usdjpy

The breakdown in USD/JPY is one to keep an eye out for

USD/JPY D1 27-07
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USD/JPY attempted to push a break under 106.00 in Friday trading last week, hitting its lowest levels since March but averted a daily/weekly close under the figure level in the end. But as we start the new week, sellers are attempting that once again.

The next key level to watch in the pair will be the 105.00 handle but we are seeing sellers keep more poised as they slowly chew through bids around 105.40-50 currently.

Elsewhere, the dollar is continuing to keep weaker as well with EUR/USD seen just above 1.1700 and testing the 38.2 retracement level of its upswing from 2017 to 2018.

Meanwhile, cable is also looking perky and keeping a break above 1.2800 for now. Buyers managed to clinch a break above the 100-week moving average and are now aiming to hold a break above the June high of 1.2813.

There's going to be a lot to sway the market mood in the coming days so this is going to be a really interesting week, despite the already fast-paced start.

Among the things to watch out for, we have the FOMC meeting, ongoing US-China tensions, US stimulus proposals being sorted out, US unemployment benefits expiring on 31 July, US Q2 GDP figures set to be released, and key tech earnings to be released (Facebook, Alphabet, Amazon, Apple) later in the week.

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