US Dow Jones 30 broke 20000 for the first time in history and has closed above the figure in a strong return of the Trump rally. This as President Trump announced his fiscal spending plans with the notable wall with Mexico gaining most of the headlines.
US Yields responded breaking back above the key 2.5% on the 10 yr but the USD was sluggish to respond with traders skeptical to buy aggressively after weeks of profit taking. The USD Index remains above the 100 level however but there is some concerns that when the USD should rally and doesnt that the whole strong USD thesis in 2017 may not be as easy as first suggested in many Analyst forecasts for 2017.
Gold however did fall back below $1200 as the safe haven lost some of the demand it had enjoyed in recent days on concern about Trumps policies. Everyday is creating new risks and comments however so the outlook is not clear especially with the USD not providing a clear direction.
AUD/USD was able to once again recover from negative news and the bullish trend is intact even with Q4 CPI coming in at 0.5% vs. 0.7% forecast. The longer it remains above the 0.7500 and the 200 day moving average the greater the chances of new leg higher.
| USD/JPY |
1/26/2017 2:26 AM |
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Trend daily chart  (=) |
Trend weekly chart (=) |
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USD/JPY Intraday: choppy. |
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Pivot: 113.15
Our preference: long positions above 113.15 with targets at 113.65 & 113.90 in extension.
Alternative scenario: below 113.15 look for further downside with 112.75 & 112.45 as targets.
Comment: a support base at 113.15 has formed and has allowed for a temporary stabilisation.
Supports and resistances:
114.10 **
113.90 **
113.65 **
113.37 Last
113.15 ***
112.75 **
112.45 *** |
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