USD/JPY Eyes High On First Overbought Reading Since December
Dailyfx | Aug 20, 2014 11:40AM ET
- GBP/USD Rebounds From Fresh Monthly Low (1.6600) on BoE Dissent
- USD/JPY to Eye April High (104.11) on Close Above 103.30
- US Dollar Threatens Former Support; RSI Pushes Back Into Overbought Territory
|
Index |
Last |
High |
Low |
Daily Change (%) |
Daily Range (% of ATR) |
|
DJ-FXCM Dollar Index |
10602.65 |
10617.14 |
10593.35 |
0.06 |
82.26% |
GBP/USD:
- Rebounds from 1.6600 as Bank of England (BoE) Minutes shows 7-2 vote count, with Martin Weale & Ian McCafferty dissenting against the majority.
- Despite the greater rift in the BoE, GBP/USD struggles to retrace the decline from the weaker-than-expected U.K. Consumer Price report.
- The DailyFX Speculative Sentiment Index (SSI) suggests that the GBP/USD remains vulnerable to further losses as retail crowd is mostly net-long the dollar, with the ratio standing at +1.52.
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USD/JPY:
- Rallies to fresh monthly high of 103.39 after closing above the key 102.80-90 zone, with the Relative Strength Index (RSI) pushing above 70; first overbought reading since December 2013.
- May retrace the entire decline from the April high (104.11) on a break & close above 103.30-50.
- As the upward trending channel taking shape, will look for a higher-low on a near-term correction.
Chart - Created Using FXCM Marketscope 2.0
US DOLLAR
- Dow Jones-FXCM U.S. Dollar Index climbs to a fresh monthly high of 10,616 after closing above the key 10,590 pivot, with the RSI pushing back into overbought territory.
- May see former support (10,615) act as new resistance, especially if the Federal Open Market Committee (FOMC) Minutes fail to prop up interest rate expectations.
- Need a bearish break in the RSI to look for a more meaningful USDOLLAR correction.
- Interim Resistance: 10,602 (38.2% retracement) to 10,615 (78.6% expansion)
- Interim Support: 10,440 (78.6% retracement) to 10,450 Pivot
|
Release |
GMT |
Expected |
Actual |
|
FOMC Meeting Minutes |
14:00 |
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--- Written by David Song, Currency Analyst
/h2
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