A look into the biggest mover in yesterday's trading
The aussie and the yen were in two opposite extremes in yesterday's trading and the pair had good reason for a move lower on a technical level as mentioned .
Another 19th month high
The GBPUSD price has now cracked above the 1.4000 level and is also moved above the 1.4004 and 1.4011 swing lows from April and June 2017. The price moved to 1.40168. Traders will now see if the key natural level at 1.4000 will hold.
GBPUSD retracing its run lower and looks back toward 1.4000 area
The dollar has weaken further.
US yields are down with the 10 year down -3.5 bp to 2.6149%. The 10 year remains well above the comparable yields in Europe (Germany 0.556%, France 0.835%. Spain 1.348%)
Trades at session lows
The USDJPY is trading at session lows. The pair whipped around during the BOJ decision (steady course). The high stalled ahead of the 111.20-22 area (swing highs on the hourly) and yes... fell back below the 100 and 200 hour MAs (blue and green lines). The tries above the 200 hour MA the last two days have failed (see red shaded areas). They were the first looks since January 10th. That is disappointing to the bulls/buyers.
The 1.4004-11 (and natural 1.4000 level) stalled the rally.
Looking at the daily chart of the GBPUSD, the pair stalled just short of the next targets. In April and June of last year, the swing lows came in at 1.4004 and 1.4011 respectively. The high today (19 month high) extended to 1.40026. Sellers leaned against the key resistance.
A client note from TD Securities Global Strategy on the yen and the BOJ today. I'll jump straight to their technical analysis and then back track
From a technical standpoint, USDJPY looks poised to enter into a new, but lower, trading range.
Tests MA level on correction
The USDJPY is back down retesting the broken 200 hour MA (green line in the chart above). That MA was broken earlier today at 110.96 area, and the price peaked at 111.22. The move back down is back at that key MA level.
The moving away from the 200 day MA. Intraday trend line support at 0.8767 approached...
As the GBPUSD strengthens, the EURGBP is falling.
Technically, the price is trading for the 4th day below the 200 day MA at 0.88343. Today is a bigger break lower. We trade at the lowest level since December 15, 2017.
Key level for the buyers to get to and through...
The GBPUSD is up testing the highs from last week at 1.39447. The price just touched 1.39457 and backed off, but the buyers are pushing. The new high is a 19 month high for the pair.
The spring is coiling. Do we get a break and run?
Technical levels in the USDJPY are converging.
The convergence of the levels suggests the market is non-trending. Eventually, the market will transition from non-trending to trending. The spring is coiling. Be on the lookout for a break and a run.
Trades above and below 100 hour MA
The EURUSD today gapped higher on the Washington failures, That took the price back above the 100 hour MA (blue line in the chart below). The price fell from the higher opening, and in the process, back below the 100 hour MA. That fall tested the Friday end of day lows. From there the price based and rebroke back above the 100 hour MA.
Trades to the highest level since the rate hike on Wednesday
It is late, but the USDCAD is seeing some late Friday buying. The price has just moved above the 1.2500 level for the first times since the "dovish" rate hike on Wednesday. The low today stalled near recent swing lows going back to January 9th.