FX: USD (US Dollar) keeps high ground. Let's Have A Look At USDJPY, EURGBP And US30 | Orbex

ECB's Dovish Shift: Markets Anticipate Softer Policy Guidance

USDJPY consolidates gains
The Japanese yen clawed back losses after BoJ boss Kuroda raised concerns about the yen's sharp decline. The pair has been climbing along a rising trend line. The lack of supply zone means that there is little resistance on the upside. The RSI’s overbought situation on the daily chart has caused a pullback and a fall below the trend line indicates that the greenback could use some breathing room. 133.50 is the first level to gauge the strength of the bullish momentum. A bounce above 135.00 would carry the price to 137.00.

EURGBP tests major resistance
Sterling weakened after Britain’s GDP showed a larger-than-expected contraction in April. A rising pennant on the daily suggests that a breakout may soon put an end to the month-long consolidation. 0.8615 is a major supply area after several failed attempts. Its breach would flush out the remaining selling interest and signal a bullish continuation towards April’s highs near 0.8700. 0.8530 is the immediate support in case of further hesitation. 0.8485 is a critical floor to keep the upward bias intact.

US 30 breaks critical support
The Dow Jones plunges over a broad-based rise in risk aversion. The liquidation continued after the price action failed to hold above 32600. Sentiment remains overwhelmingly downbeat. A fall below the major support at 30700 may officially make the recent rally a dead cat bounce and send the index into bearish territory. The psychological level of 30000 would be the next support. An oversold RSI may trigger a temporary bounce but the bears could be expected to sell into strength near 31700.

ECB's Dovish Shift: Markets Anticipate Softer Policy Guidance

Jing Ren

Jing-Ren has extensive experience in currency and commodities trading. He began his career in metal sales and trading at Societe Generale in London. Later on he worked as a senior analyst within the FX brokerage industry where he developed strategies in trading and risk management. With solid understanding of market dynamics he founded Wensfer to offer research and asset management services.