Yen under Pressure

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Yen under Pressure
Yen under Pressure

Yen under Pressure

The Japanese yen is under pressure against the major currencies where the greenback has been able to gain significantly against it as the USD/JPY pair rallied by nearly 95 points on Thursday.

This move was solely based on the technical levels, as the pair managed to close just above the important level of 97.50 on Wednesday, as the U.S. dollar gained after the FOMC meeting minutes.

The pair is now hovering near 98.67 in the early hours of the Asian trading session, where it has been trapped just below its strong resistance level that lies at 99.02. Now that the pair has entered the bullish channel, the bulls would definitely try taking the pair to test this level, where a sustainable move above this resistance level would open the doors for the pair to target 99.35, 99.70 and 100.20 in near term. Buying opportunity remains there as long as the pair trades above the 97.85 support area.

Bullish Correction by the Aussie

The Australian dollar had no fundamental due on Thursday where it focused to give a bullish correction for its previous plunging rally, where it is now trading at 0.9005 after giving 38.2% correction on the Fibonacci scale.

The overall outlook for the pair is still bearish as long as it does not move above 0.9105 the resistance level, so sellers would keep enjoying the pair as long as the price remains below this level. A move below 0.8992 could result in showing the next support level at 0.8965 and then yesterday’s low at 0.8930.

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Gold Sustains its Shine  

The metal has remained firm against the U.S. dollar for the past several days, despite the U.S. dollar getting stronger against the major currencies as the FOMC meeting discussion hinted towards tapering the stimulus plan. Gold bounced back from its previous support area of 1352 after which it sustained above the previous resistance level of 1375 and then also tested the 1383 resistance level.

It closed just above 1375 level yet again, which signals that the bulls are still in control of the gold market, where they are eying to take the metal’s price up to 1383 and then 1403.

The investors are eyeing the important data release of New home sales of the U.S. that is set to be released later today in the U.S. session, where a disappointing outcome could help the metal gain against the U.S. dollar and move up.

To contact the reporter of this story: Jonathan Millet at john@forexminute.com