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Daily Market Report – USD/JPY monstrous decline to come August 11, 2017

By Mexgroup.com

USD/JPY Poised For Valid Breakdown

Price dropped significantly on Thursday and looks determined to drop towards fresh new lows in the upcoming period. Is very heavy as the USDX slips lower after the poor US data and because the Yen is boosted by the Nikkei stock index.

I’ve said in the previous days that the Yen should dominate the currency market if the JP225 will take out the 19700 static support. Nikkei plunged much below the mentioned static support and looks unstoppable on the daily chart. The index could find support at 19278 or lower at the 18936 static support.

USD/JPY is going down as the greenback has taken a hit from the US high impact data, the PPI dropped by 0.1%, even if the traders have expected to see a 0.1% growth, while the Unemployment Claims increased from 241K to 244K, failing to reach the 240K jobs in the previous week.

11JPYUSD

Price is trading in the red and has managed to drop below the downside line (red line) of the symmetrical triangle and below the 50% retracement level. A valid breakdown from the chart pattern and a retest of the 50% level will confirm a further drop. Price should drop around 700 pips if will breakout from the symmetrical triangle. I don’t know if it will drop so much, but a broader drop will come for sure.

Support can be found at the warning line (wl1), but a further Nikkei’s drop will help the price to ignore this downside obstacle.

We have important downside targets at 61.8% retracement level, at the 38.2% retracement level and at the second warning line (WL2).

Brent False Breakout, Sell-off Favored

11brent

Price made another false breakout above the 53.03 static resistance and now is trading in the red again. Is trading near the $52.30 per barrel and could drop towards the $50.30 per barrel because the price could be attracted by the confluence area formed at the intersection between the sliding line (SL) with the uptrend line (ascending dotted line). The perspective remains bullish as long as is trading within the minor ascending channel.

NZD/USD Is This A False Breakdown?

11nzdusd

NZD/USD plunged and reached the 0.7251 level, but failed to stay there as the USDX has slipped lower after the poor US data. Price dropped below the confluence area formed at the intersection between the 38.2% with the fourth warning line (wl3), a valid breakdown will accelerate the sell-off, while a fake out will send the rate towards the 23.6% retracement level.

By Olimpiu Tuns

Market Analyst

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About Louie Lewis

Louie Lewis
Successful forex trading starts with you first. Then comes the actual strategies and techniques. I have been involved with forex and forex trading for a few years now. It is a wonderful way to build wealth. The learning never stops and I want to help others along their journey into this wonderful market of opportunity.

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