Stocks giving up some of the early gains
EU trade retaliation comments has the USDJPY moving lower. US pre-market gains are also giving up some of the earlier gains. The S&P is up abaou 7 points (vs 11 earlier). The Nasdaq is up 15 vs 30 earlier.
Looking at the hourly chart, the pair is down testing the 200 hour MA (green line) at 110.663. THe low for the day reached 110.61. The Thursday low reached 110.558.
The low for the week was in the first hour of trading on Monday at 110.418.. The high was on Wednesday at 110.943. The total range of 52 pips is the most narrow trading week since early January 2012 IF the range is not extended today. Low volatility.
Where we are right now is in the middle of the trading range. The extremes seem miles away but they are only 25 pips away. The 200 and 100 hour MAs are barometers for bulls and bears. Trade below and we could make a run to the downside (and get a range extension). Hold here and start trading back above the 100 hour MA with momentum, and maybe there is more upside.
Favoring the downside, is trade war concerns and US yields have also moved lower. The 10 year is down -3.2 bps after being down about -1 bp earlier this morning.
Favorng the upside is BOJ Kuroda is just out with a Japanese press article saying BOJ would mull additional easing if economy loses momentum toward hitting price goal (which is not happening). He has been trying to talk down the JPY this week.
