Forex Marketz Daily Forex News – Fully Markets Update
The USD/JPY Forex market corrected a bit higher, as it found some interim support. The Dollar had been inching lower again after it found resistance just below the pivot at ¥125.
Technical Analysis
Let us look at today’s USD/JPY technical analysis. There is near term support lining up at 123.17. A daily close below this technical level challenges the technical support lining up at 122.40. The alternative technical analysis for the USD/JPY sees the dollar correcting higher. In that case we have technical resistance lining up at 123.68. A break above this technical level challenges the technical resistance lining up at 124.55.
Trade Strategy
Looking at trade strategy for this Forex market sees a lot happening with event risk. Would appear the market had priced in the Japanese retail sales which contracted 0.9 percent on an annual basis. Later today, we have the US Federal Reserve’s FOMC policy meeting. Investors will be listening to the key post statements. If the Fed is too dovish, then the US Dollar will fall, if they indicate a rate hike in September, the US Dollar will gain strength. Look at the technical analysis for today, price action is wedged between a technical support and resistance level. There is no clearly defined price movement warranted a long or short USD trade at this time. Timing is not quite right for any trade from a risk to reward perspective. Taking into account all the event risk, which could cause Dollar volatility, and lack of price action, I am opting to stand aside and monitor my charts for a more actionable trade opportunity to come along.