USD/JPY Climbs Higher
The currency pair increased sharply today and reached fresh new highs as the Yen was punished by the Nikkei’s further increase and because the USD is supported by the USDX’s rally. The dollar index resumed the upside momentum and reached the 93.81 static resistance again. Is very important to see what will really happen on the USDX because another rejection from here or a false breakout will send the rate down again and will force the USD to drop versus its rivals on the short term.
The USDX needs a bullish spark to be able to climb above the 93.81 static resistance. The US Building Permits are expected to drop from 1.27M to 1.25M, while the Housing Starts could remain the same at 1.18M. The Federal Budget Balance and the Beige Book will be released as well, but I don’t think that will have any impact.
Price increased after the yesterday’s indecision and climbed above the 112.80 level. The next upside target will be at the median line (ml) of the minor blue ascending pitchfork. Technically, it should climb much higher after the failure to retest the 38.2% retracement level and after the today’s aggressive rally.
USD/JPY moves in range on the Daily chart, is trapped between the 23.6% retracement level and the 108.12 level, only a valid breakout will bring us a clear direction.
USD/CHF Strongly Bullish
Price rallied and resumed the upside movement as the USD was pushed higher by the USDX’s rally. USD/CHF jumped much above the 0.9787 static resistance and could reach the median line (ml) of the ascending pitchfork in the upcoming days.
The rate reached the 0.9835 previous high, but failed to pass above it, I’ve said in the previous reports that we may have a minor consolidation above the 0.9787 level before the rate will jump much higher.
EUR/CHF Breakout In Play
The EUR/CHF increases and climbs above the upper media line (uml) of the descending pitchfork and above the fifth warning line (wl5) of the former descending pitchfork. A valid breakout will signal a further increase, the near term target will be at the 1.1621 previous high.
By Olimpiu Tuns – Market Analyst
I graduated a Master in Business Administration, I am a Market Analyst / Trader on Financial Markets (forex, commodities, futures, options) for more than 6 years, I use technical and fundamental analysis for my daily activity. Founder and Market Analyst at ovtbusiness.com (Financial Markets Blog) and contributor on investing.com, actionforex.com, countingpips.com, forexalchemy.com, etc.
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