USD/JPY Rallies To Fresh High As EUR/USD Tilts Back-Below 1.1300

US DOLLAR PULLS BACK, FINDS SUPPORT AT PRIOR RESISTANCE

The bullish trend in the US Dollar pulled back yesterday, but buyers appeared to remain motivated as support began to develop off of last week’s resistance around the 96.68 level. With this week now hitting the half-way point, markets have already heard from multiple FOMC members and a few speeches of note remain. Later today, Patrick Harker will speak at Noon on the Economic Outlook, and again tomorrow at 11 AM ET. Friday brings comments from Rafael Bostic on the topic of Workforce Development, and this takes place around the release of U. of Mich Sentiment numbers at 10 AM. Also on the economic calendar is the release of tomorrow’s Advance Retail Sales numbers out of the US.

US DOLLAR EIGHT-HOUR PRICE CHART

us dollar usd eight hour price chart

Chart prepared by James Stanley

USD/JPY TO NEXT FIBONACCI LEVEL

The bullish breakout in USDJPY has continued through this week, and even with the pullback in DXY yesterday, USDJPY bulls have continued to push. Prices are now approaching a potential area of resistance on the chart at 110.86, which is the 61.8% Fibonacci retracement of the November 2017 – March 2018 major move. Of note are the support/resistance inflections derived off of those retracement levels so far this year, with each of the 23.6, 38.2 and 50% markers all seeing some element of reaction. Most recently, that 50% marker was attached to the 110.00 psychological level to create a ‘zone’ that saw a range build in the latter-portion of last week, leading to this week’s topside breakout.

USD/JPY FOUR-HOUR PRICE CHART

usdjpy usd/jpy four hour price chart

Chart prepared by James Stanley

USD/CAD BOUNCES FROM 1.3200 TEST

On the other side of the US Dollar or for those looking at short-side USD strategies, USDCAD remains of interest. I had looked at this in this week’s FX Setups as prices created a lower-high point of resistance last week, and that came just after a fresh lower low printed in the opening days of February. A follow-through lower-high printing this week inside of the 1.3325 level kept the door open for bearish biases, and that theme has thus far continued as prices tilted-down to the 1.3200 level overnight.

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