JPY(Yen) Recovers Slightly, USD Remains Dominant

JPY(Yen) Recovers Slightly, USD Remains Dominant
September 24, 2014

The US Dollar started the week on a higher note, especially against the commodity currencies as both AUD (Australian Dollar) and CAD ( Canadian Dollar) were suffering severe losses.

The Canadian dollar looks extremely weak heading into end of week trading. The market is forming a possible impulsive move according to the 4 hour chart, and this seems to stretch all the way up to recent highs in the 1.1250 region.

One fundamental reason that lifted the USDCAD pair was the Retail Sales indicator released on Tuesday, which showed lower values than expected. Retail Sales are a sign of consumer health and this is vital indication of an economy that is expanding or contracting.

A look to Asia saw a little strength in the JPY (Japanese Yen), especially against the US dollar as Prime Minister Shinzo Abe voiced concerns about the economic impact of Japanese currency’s fall to a six year low.

USDJPY bears experienced unexpected support from Japanese business representatives as the association stated that a fast depreciation of Yen is actually hurting rather than helping businesses. As a result, USDJPY sold from the 109 into the 108.50 area, but in order for the move to be taken seriously we need to see a break of 108. This may be something to look forward to during the rest of the trading week.

Speaking of the rest of the week in trading, there are no more important economic releases to influence markets. Our focus will be on analyzing technical levels. We encourage our traders to do the same.

The EURUSD is still hanging above the all important 1.2835 area. A break there should see the pair below the 1.28 range. The previous low was 1.2816. The attempt to break the 1.29 this week should only bring more bears to the EURUSD party.

It remains to be seen if the US dollar has the power to keep its current levels, but judging by price action, we estimate that it will.

Don’t forget, you can trade currency pairs with our approved Binary Options and Forex Brokers.

Sammy

Sammy

Sammy is our forex expert, with over 20 years experience in the financial sector, she will be keeping you up to date with the ups and downs of currencies around the world


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