Intraday Market Analysis – USD Rally On Pause

USDJPY hits resistance

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The Japanese yen recovered as the Tokyo core CPI beat estimates in September. The price has recouped most losses from the previous sell-off, a sign that sentiment remains upbeat despite a temporary setback. A close above the recent top at 145.80 may attract momentum buying and resume the uptrend in the weeks to come. Then August 1998’s high at 147.50 would be the next target. As the RSI climbs into overbought territory, the lower end of a brief consolidation (143.90) is the first support in case of a pullback.

EURGBP struggles for support

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The pound rallied after British Prime Minister Liz Truss backpedalled on her tax cut proposal. A break below the base of the latest rally at 0.8720 mirrors strong demand for the pound across the board. 0.8640 at the origin of a surge above June’s high (0.8700) is a critical support from the daily chart. Its breach would invalide the rebound and push the euro into a corrective course. 0.8830 is the immediate resistance and the bulls will need to reclaim 0.8970 before they could hope to regain control.

XAGUSD tests daily resistance

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Silver surged after weaker-than-expected US manufacturing data sent Treasury yields lower. A break above 19.00 has prompted short-term sellers to cover their bets, easing the downward pressure. Then a pop above the psychological level of 20.00 attracted momentum buying. The precious metal is testing the daily resistance at 20.80, giving the bulls a chance to push back. A bullish breakout could pave the way for a reversal in the weeks to come. The resistance-turn-support at 19.50 is the first level for accumulation.

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