Littlefish FX | Nov 17, 2014 04:56AM ET
OVERNIGHT:
Unexpected contraction in Japan Q3 preliminary GDP saw USDJPY drop 150pips from an early high print of 117.05. Q3 GDP unexpectedly contracted -0.4% qoq vs expectation of 0.5% qoq growth thus taking the world’s 3rd largest economy into another technical recession. The surprise Japan GDP contraction should effectively seal the decision to postpone the second round of sales tax increase. Indeed, local press has already reported PM Abe will hold a special press conference tomorrow formally announcing that delay, which might come with an early election to secure the support for this decision.
Looking ahead, main data comes in the US session with US empire state manufacturing, industrial production & capacity utilisation.
OVERNIGHT PRICE ACTION:
KEY TRADES:
FX Pair | Intra Day | Position/Date | Entry Level | Target | Stop | Comments |
EURUSD | Bullish | Await new signal | ||||
GBPUSD | Bearish | Sell / 14 Nov | 1.5650 | Open | 1.58 | |
USDJPY | Neutral | Await new signal | ||||
USDCAD | Bearish | Await new signal | ||||
AUDUSD | Bullish | Await new signal |
ANALYSIS:
EUR/USD Short Term (1-3 Days): Neutral – Medium Term (1-3 Weeks) Bearish
GBPUSD: Short Term (1-3 Days): Bearish – Medium Term (1-3 Weeks) Bearish
USD/JPY: Short Term (1-3 Days): Bullish – Medium Term (1-3 Weeks) Bullish
USD/CAD: Short Term (1-3 Days): Bullish – Medium Term (1-3 Weeks) Bullish
AUD/USD: Short Term (1-3 Days): Neutral – Medium Term (1-3 Weeks) Bearish
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