eToro – Forex Trading Forum

[BlueinGreen]

Morning all

this morning the USDJPY is trading once again above 108, while i was expecting the Dollar to gain back some of the last week's correction-especially verses the YEN, i was not expecting it to happen so fast i admit.
I was thinking we are going to see some higher levels for EURUSD before we can get under 1.55 again. However the market has a different view, and after all you can not argue with the market.

Data out of Germany came out lower than expected yesterday ( german business sentiment), that surly helped pushing the EURUSD lower for now.
However the JPY stayed quite weak against major pairs throughout the last few weeks. Just look at EURJPY, AUDJPY, GBPJPY.

One thing we should look at right now concerning the USDJPY is that technically this pair is trading in a very strong Resistance area on the daily chart ( around 108.3) i hold the view that if that area will break clearly into 109, then we might see 112 by the end of the summer. However because it is such a strong resistance level, it can certainly rebound to around 105.5 before breaching this resistance. in any case i am holding my longs for now aiming that 112, i will reconsider it in case we will see lower than 105 in the near future.

Today we have an important report out

3:00pm GMT USD: Consumer Confidence forecast 56.4 previews 57.2

Consumer Confidence =Measures the mood of consumers in regard to economic conditions. The reading is derived from a monthly survey that asks respondents to evaluate the prospects for the economy in the future. Higher readings point to higher consumer optimism. When consumers are optimistic they tend to purchase more goods and services, which stimulates the economy.

this report can be highly tradable, a better than expected number can help the dollar push well under 1.55 for now, while a much worse figure could bring back 1.56 and even 1.57 EURUSD.

Happy trading