Daily Market Report – Downside Interrupted Again September 11, 2017

By Mexgroup.com

USD/JPY False Breakdown?

The USD/JPY plunged in the last two days, but now has opened with an immense gap up, signaling that the bulls are still in the game. Is trading in the green right now, but remains to see if the buyers will be strong enough to push it towards new highs, or this it was only a temporary rebound.

Price increased as the Nikkei stock index has jumped amazingly in the Asian session. The USDX has increased as well, but is premature to talk about a broader rebound. USDX is still under massive selling pressure, only an accumulation will bring more buyers in the market.

The Yen dropped on the mixed Japanese data,  the M2Money Stock rose by 4.0% in August, less versus the 4.1% estimate, the indicator remained steady at 4.0%, while the Core machinery Orders surged by 8.0% in July, beating the 4.2% estimate.

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Price is trading in the green and struggles to stay above the 108.12 horizontal support. Has opened with a huge gap up, which could invalidate a further drop. USD/JPY  failed to reach and retest the 61.8% retracement level. A false breakdown below the 108.12 level will signal a rebound at least till the third warning line (WL3) of the descending pitchfork.

Technically is still expected to reach the 250% Fibonacci line (ascending dotted line), where he could find support as well. Only a breakdown below this dynamic support and below the 38.2% resistance level will confirm a major drop, this scenario is less likely to happen. A broader drop will be confirmed after a valid breakdown below the upper median line (uml) of the ascending pitchfork.

AUD/USD Seems Exhausted

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AUD/USD is trading in the red and signals an overbought after the impressive rally. The Friday’s spike shows that the bulls could lose significant ground in the upcoming days. We had a false breakout above the 0.8065 and above the median line (ml) of the minor ascending pitchfork, so it could drop at least till will reach and retest the lower median line (lml) of the ascending pitchfork.

EUR/CHF Near Crucial Levels

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EUR/CHF is struggling to stay higher after the Friday’s immense drop. Is trading in the green and is approaching the WL4 again, I’ve said in the last weeks that the price will climb much higher and will resume the upside movement only if will stabilize above the mentioned dynamic resistance.

By Olimpiu Tuns

Market Analyst  

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