FxWirePro: USD/JPY recovery attempts capped at 21-EMA, hovers around 11 handle ahead of US new home sales data
USD/JPY recovery attempts capped at 21-EMA at 111.36, trades 0.14% lower on the day. Technical indicators are slightly bearish. We see scope for downside on bearish divergence and weak momentum indicators. Markets await …
USD/JPY recovery attempts capped at 21-EMA at 111.36, trades 0.14% lower on the day.
Technical indicators are slightly bearish. We see scope for downside on bearish divergence and weak momentum indicators.
Markets await US new home sales data due later today ahead of the US Q2 GDP figures slated for release this Friday.
Focus shall also be on the all-important trade talks between the European Union (EU) President Juncker and the US President Trump.
While Trump called for a free trade deal with the EU late-Tuesday, EU urges for Trump to suspend tariffs in order to get a trade deal.
Global trade war tensions continue to dent market sentiment and will likely keep downside pressure on the pair.
Next major support lies at 110.55 (50-DMA) ahead of 110.09 (200-DMA). 21-EMA is immediate resistance. Breakout above could see minor upside.
FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at -68.4943 (Neutral), while Hourly JPY Spot Index was at 121.477 (Bullish) at 1145 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
