Tools for Traders Top Movers | Heat Map | Pivot Point | Pivot Meters | Action Bias | Volatility Charts Action Insight Daily Report: Dollar Rebound Lacks Conviction, Except Versus Aussie and Possibly Yen Dollar jumps broadly overnight but it's rally is starting to lose steam again in Asian session. Instead, while Yen remains the weakest one for the week, it's starting to regain some strength. So far, the Japanese is not benefiting from risk aversion this week. Even though stocks attempted to rebound, there was no sustainable buying. DOW closed nearly flat by -0.04% overnight but NASDAQ extended recent fall by closing down -0.85% at 6949.23, losing 7000 handle. The pre-holiday calendar is rather busy today and we could see some bigger moves as liquidity dries up. US- China Trade Tensions: Trump's Soap Opera to Get Better Deal Over the past months, US trade policy has been a major cause of the wax and wane of the financial markets. The White House has triggered a number of investigations under the rarely used 1972 US trade law since Trump took office. All investigations have resulted in tariff imposition, claiming to be targeting China. While Trump's tariff vow is indeed consistent with his brinkmanship foreign policy practice (pushing everything to an extreme in order to gain bargaining power), we notice that the tariffs announced are merely threats and do not intend to pose actually impact on Chinese economy. Technical Outlook USD/JPY Daily Outlook Daily Pivots: (S1) 105.12; (P) 105.51; (R1) 105.71; More... USD/JPY's rebound from 104.62 extended to as high as 107.00 so far. The break of 106.63 resistance indicates short term bottoming on bullish convergence condition in 4 hour MACD. Intraday bias is back on the upside for 38.2% retracement of 114.73 to 104.62 at 108.48. At this point, there is no confirmation of trend reversal yet. Hence, we'll look at the reaction from 108.48 (which is close to 108.12 too) to assess the chance. On the downside, below 105.31 minor support will indicate that the rebound is completed and turn bias back to the downside instead. Suggested Readings Can EUR/JPY Recover Above 132.50?U.S. Inflation to Gain Speed As Headwinds Turn to Tailwinds Canadian GDP Due Amid Raft of US Releases Dollar Turns its Sights to Core PCE Price Index, Spending & Income Data Economic Data
|
 |
| |
