Published on 11/01/2018 10:42:49 AM | Source: GEPLCapital Ltd

USD/JPY Breaks Below Support Of 112 - GEPL

Posted in | #GEPLCapital Ltd #Currency Tips


Market Commentary

The dollar fell sharply higher against a basket of major currencies amid fears of a significant reduction in foreign dollar asset purchases after a report suggested China is considering reducing its US Treasury purchases.

The U.S. dollar index,fell 0.28% to 91.97. USD/JPY was down 1.01% at 111.52, the weakest level since November 29 and was on track for its largest one day decline in almost eight months.

Elsewhere, the euro rose around half a cent against the weaker dollar, with EUR/USD rising 0.24% to 1.1965.The euro had weakened in recent sessions as investors took profits after its rally at the start of the year amid concerns that the European Central Bank may attempt to talk down the strengthening currency ahead of its monetary policy meeting later this month.

Sterling was down, with GBP/USD decreasing 0.20% to 1.3512.

USD/INR open at 63.75 below the previous days closed of 63.84 and prices made an intraday high of 63.97. Bear were on full swing in the second half, prices pullback made an intraday low of 63.69 and closed at 63.73. For the day we expect it to trade between 63.40 and 64.10 If prices sustain below 63.75 we might see prices testing 63.38 levels.

USDINR Technical Outlook

Observations:

* Prices failed to break above the 20 day SMA(63.99) and resistance placed at 64

* RSI and Stochastic bouncing off their support levels indicating we might see short throwback

Inferences:

* Trend to remain bearish till 64.44 is not broken on the upside

* If prices sustain below 63.75 we might see prices testing 63.38 levels

EURINR Technical Outlook

Observations:

* Prices bounce off the 20 SMA and break above the 2 day high

* RSI and Stochastic heading downward indicating we might see pulling back to the support levels

Inferences:

* Trend to remain bearish till 77 is not broken on the upside

* If prices break below 76 we might see prices testing 75.54 levels

GBPINR Technical Outlook

Observations:

* Prices closed above the 20 SMA (86.15)and above the three days high

* RSI and Stochastic indicating prices may retest their support levels

Inferences:

* Trend to remain sideways till prices did not close above 86.61

* If prices sustain above 86 we might we prices testing 86.61

JPYINR Technical Outlook

Observations:

* Prices are making lower high lower low pattern, prices break and closed above the 6 days high

* RSI and Stochastic bouncing off their support levels indicating we might see short throwback

Inferences:

* Trend to remain bearish till 57.47 is not broken on the upside

* If prices sustain above 57 we might see prices testing 57.47 levels

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