DailyFX.com -

Talking Points:

- USD/JPY Struggles to Clear 102.00; Bearish RSI Momentum Remains in Play

- Gold Tests Former Support; Still Treated as Commodity Rather Than Currency

- USDOLLAR Coming Up Against Trendline Resistance Ahead of 2Q GDP, FOMC

Index

Last

High

Low

Daily Change (%)

Daily Range (% of ATR)

DJ-FXCM Dollar Index

10492.83

10495.01

10467.13

0.22

120.32%

USD/JPY:

  • Continues to threaten near-term resistance (101.80-102.00); JPY pairs in focus as EU prepares more sanctions on Russia.
  • With the Relative Strength Index (RSI) retaining the bearish trend carried over from the previous year, USD/JPY remains at risk for a lower-high as long as it holds below the July high (102.25).
  • Bank of Japan’s (BoJ) Koji Ishida sees 2% inflation target being achieved in the middle of the projected period; looks as though we will hear more of the same from Governor Haruhiko Kuroda at the August 8 policy meeting.

Gold:

  • Downside targets remain favored as Gold carves lower-high in July & fails to retain bullish RSI momentum.
  • Favor ‘selling bounces’ in bullion as it struggles to push back above former support around 1306-1310; Gold still being treated as a commodity rather than an alternative currency as it mimics the price action in Silver.
  • Next key downside objective comes in around 1277, 61.8% Fibonacci retracement from the July 2013 advance.

For more updates, sign up for David's e-mail distribution list.

USD/JPY July Opening Range in Focus Ahead of 2Q GDP, FOMC Meeting

Join DailyFX on Demand for Real-Time SSI Updates Across the Majors!

Read More:

Price & Time: What Is Going On With Gold?

EUR/USD Bearish Sub-1.3475; EUR/GBP, EUR/JPY May Have Other Ideas

USDOLLAR Daily

USD/JPY July Opening Range in Focus Ahead of 2Q GDP, FOMC Meeting

Chart - Created Using FXCM Marketscope 2.0

USDOLLAR(Ticker: USDollar):

  • Another close above the 10,470 pivot to generate larger correction in the Dow Jones-FXCM U.S. Dollar Index; next topside target comes in around 10,508-509.
  • Will watch channel resistance from here, but the bullish RSI momentum suggests a further advance for the greenback.
  • U.S. 2Q GDP & Federal Open Market Committee (FOMC) meeting may set the tone for August trade given recent strength in Non-Farm Payroll (NFP) figures.
  • Interim Resistance: 10,508 (61.8% retracement) to 10,524 (38.2% retracement)
  • Interim Support: 10,354 (Oct. low) to 10,375 (50.0& retracement)

Release

GMT

Expected

Actual

S&P/Case-Shiller Composite-20 s.a. (MoM) (MAY)

13:00

0.30%

-0.31%

S&P/Case-Shiller Composite-20 (YoY) (MAY)

13:00

9.90%

9.34%

S&P/Case-Shiller Home Price Index (MAY)

13:00

171.25

170.64

Consumer Confidence (JUL)

14:00

85.4

90.9

Click Here for the DailyFX Calendar

Related Articles
  1. Forex Education

    Four Currencies Under the Spotlight in 2016

    With currencies having become the “tail that wags the dog,” in terms of their impact on the global economy, these four currencies will be under the spotlight in 2016.
  2. Forex Fundamentals

    These Currencies Are The Biggest Losers Of The Stock Downturn

    Here’s a list of the hardest-hit currencies amid the global stock market mayhem.
  3. Forex Strategies

    Will the Euro Continue to Rally? (EUO)

    The euro is rallying. Should investors chase this performance or is the real opportunity on the other side of the trade?
  4. Investing News

    China’s Forex Reserves Dropped Significantly

    China’s forex​ reserves dropped by a record $93.9 billion at the end of August to $3.56 trillion because the Central Bank has been selling dollars to provide a cushion to the falling yuan​
  5. Forex

    The Pros and Cons of a Fully Convertible Rupee

    Amid the rising economic power of India, the talks of making the Indian currency fully convertible are gaining momentum. We look at the pros and cons.
  6. Forex Fundamentals

    Chinese Yuan an Unlikely Reserve Currency

    As the world's second largest economy, China's challenge to America’s dominance includes a push to make the yuan (RMB), the world’s reserve currency. Whether it can do that now is unclear.
  7. Economics

    How Currency Enforcement Helped Sink The Trans-Pacific Partnership (TTP)

    One particular barrier to trade that has received much attention of late and caused delays in negotiations of the TPP is exchange-rate manipulation, by which a country artificially devalues its ...
  8. Forex

    Top U.S Forex News Sites

    Breaking news moves forex markets. Here are the top U.S. sites for tracking forex news.
  9. Investing

    Financial News Comparison: Bloomberg Vs. Reuters (BAC, GOOG)

    Access to financial information has grown with the expansion of digital news. Bloomberg and Thomson Reuters lead the pack, claiming a majority of the business information market.
  10. Economics

    Who Benefits From South Korea's Lowered Interest Rates?

    South Korea is the latest country to cut interest rates in an attempt to stimulate economic growth.
COMPANIES IN THIS ARTICLE
Trading Center