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Talking Points:

- USD/JPY Clears April High (104.11) Even as S&P 500 Remains Capped by 1,994

- AUD/USD Risks More Meaningful Run at 0.9200 Support Amid Range-Bound Prices

- USDOLLAR Rebounds From 10,615 as Fed Chair Yellen Adopts More-Neutral Tone

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USD/JPY

USD/JPY Clears April High on Yellen- AUD/USD Continues to Eye 0.9200

  • Rallies to a fresh monthly high of 104.18 with the Relative Strength Index (RSI) pushing deeper into overbought territory.
  • Next key topside region to watch comes in around 105.20 (50.0% expansion) to 105.50 (61.8% retracement), which includes the 2014 high of 105.43.
  • The DailyFX Speculative Sentiment Index (SSI) ratio on USD/JPY flipped on August 19 and shows retail crowd is now net-short as it stands at -1.65.

AUD/USD

USD/JPY Clears April High on Yellen- AUD/USD Continues to Eye 0.9200

  • String of failed attempts to push back above former support (0.9330-40) raises the risk of seeing a more meaningful move at the key 0.9200-10 support zone.
  • Bearish RSI momentum may continue to limit the topside for AUD/USD; may need a key catalyst to spur a break of near-term range.
  • May need the Fed to lay out a more detailed exit-strategy as the Reserve Bank of Australia (RBA) continues to see a period of interest rate stability.

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Read More:

EUR/USD, USD/JPY Ready for Yellen, Draghi Jackson Hole Speeches

Fed’s Yellen Stokes USD Rally as Labor Progress Could Incite Rate Hikes

USDOLLAR

Index

Last

High

Low

Daily Change (%)

Daily Range (% of ATR)

DJ-FXCM Dollar Index

10639.38

10648.49

10614.66

0.11

108.72%

USD/JPY Clears April High on Yellen- AUD/USD Continues to Eye 0.9200USD/JPY Clears April High on Yellen- AUD/USD Continues to Eye 0.9200

Chart - Created Using FXCM Marketscope 2.0

USDOLLAR(Ticker: USDollar):

  • Dow Jones-FXCM U.S. Dollar Index continues to eye former support from earlier this year around 10,657 (61.8% expansion) as Fed Chair Janet Yellen adopts a more neutral tone for monetary policy.
  • Keeping a close eye on the RSI as it remains capped by 78; bullish break in oscillator to favor a further USD advances.
  • However, a turn in the RSI and a break of the bullish momentum would highlight a risk for a larger correction in the greenback.
  • Interim Resistance: 10,657 (61.8% expansion) to 10,661 (23.6% retracement)
  • Interim Support: 10,555 (50.0% retracement) to 10,561 (100% expansion)

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Release

GMT

Expected

Actual

Fed Chair Janet Yellen Speaks at Fed Symposium

14:00

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