Can it stay above in the new trading week
The USDJPY spent the last 8 weeks below the 100 and 200 week MAs (blue and green lines in the chart below). Two weeks ago the pair stalled at new year lows - taking out the April 16th week low at 108.12.
September 22, 2017 winners and losers on the day
As North American traders enter for the trading day, the CAD is strongest while the GBP is the weakest. The USD is mostly weaker with the greenback down against currencies the exception of the GBP.
Back below $1300
The price of gold has continued its move lower. The US dollar is higher today vs the AUD, NZD, CAD, CHF and JPY. It is lower vs. the EUR and GBP. A higher dollar tends to cheapen the precious metal.
Below 50% of years range too
The EURGBP is moving lower and trades near session lows. The pair did rally into the London morning session but stalled just ahead of the 100 hour MA (blue line in the chart below). That is a bearish play and sellers took control.
Peaks against the 100 hour MA
The EURUSD moved higher over the last hour or so, and in the process moved above the 38.2% at 1.19258. The break, led to a run higher. That run peaked against the 100 hour MA (blue line in the chart below) and 1.19549 (the high reached 1.19534). That moving average was the highest of three including the 100 hour moving average on the 4-hour chart at 1.19393, and the 200 hour moving average at 1.19462 (the 100 hour MA at 1.19544 was the highest). Although the high peaked right against the highest MA (a move above might have triggered stops), the sellers did lean, and the price has rotated lower ().
The 0.79476 level is home to the 200 week MA AND the 200 bar MA on the 4-hour chart.
The AUDUSD cracked and closed above the 200 week MA for the 1st time since May 2013 two weeks ago. Last week, the price closed lower but held the 200 week MA.
Post-Brexit corrective highs below. The 100 hour MA and trend line above.
I have spoken a lot about the post-Brexit highs from June, July and September on this site of late. On Friday last week, the price moved above the 1.3443-798 area. That is where the swing highs were reached AFTER Brexit (see daily chart below).
Stalls ahead of the 38.2% of the move lower
The EURUSD is now higher on the day (closed at 1.1890) but below the 38.2% retracement of the move down from yesterday's high (at 1.1926). ECB Dragh is scheduled to speak in Frankfurt at the bottom of the hour. His comments may impact the pair.
Break above topside trend line failed. 200 day MA key support now at 112.15
There is a lot going on in the USDJPY chart.
The 4-hour chart below shows that the pair moved above a topside trend line (currently at 112.52) yesterday and into today. However, the break and momentum approached another key area defined by swing highs and lows going back to June and July. During that time the price broke higher, retraced and formed a floor at 112.81-93, only to break that floor and trend lower.
The USD is continuing it's rally post-FOMC
As North American traders enter for the trading day, the EUR is the strongest, while the AUD is the weakest. The USD is continuing it's move higher after the Fed announced the start of the balance sheet unwind, and said they expect 1 more hike in 2017 and 3 in 2018. The commodity currencies are hurting on the back of the stronger dollar. Spot gold is down another -$8.00 on the day. It trades at $1293 now. also helped to pressure the currency.
Dow up 9 straight days
The Fed started the balance sheet reduction (albeit at a slowww rate) and signaled their expectation for 1 more hike in 2017 and 3 in 2018, but the stocks did not flinch...much. The S&P and the Dow closed at record levels. The Nasdaq did shed -5.28 points but recovered by 42 points from the lows. A down day, feels like an up day.