Orbex's Jing Ren talks US dollar versus Japanese yen, EURCHF and DAX - December, 12 2022

USDJPY holds steady

The US dollar edged higher after November’s PPI beat estimates. Sentiment remains fragile after the price made a U-turn at 137.80, which was a brief support in the previous consolidation. Some buying interest has emerged from 135.40 with the RSI returning to the neutral area. A break above 137.80 would extend gains to the top of a faded rebound at 139.70. Only its breach could lighten up the mood and attract more buyers. On the downside, 133.70 would be a critical floor to keep the current bounce valid.

EURCHF pulls back

The euro retreats ahead of the ECB interest rate decision. On the daily chart, the single currency is still consolidating its gains after breaking above September’s high of 0.9850. The supply zone near the recent peak (0.9940) seems to be a hard hurdle to clear. The choppy price action is a sign of hesitation due to a lack of catalyst. 0.9820 is the closest support and the RSI’s oversold condition may attract some bargain hunters. A bounce above the psychological level of 0.9900 could trigger a sustained recovery.

GER 40 struggles for support

The Dax 40 fell back as traders took profit ahead of a data-intensive week. The bulls have struggled to lift offers around June’s peak of 14650. Instead, a fall below 14350 prompted short-term buyers to take some chips off the table. The former demand zone around 14400 has become a supply one, and more sellers would join the rank if the buy side fails to reclaim it. The recent low of 14150 sits on the 30-day moving average and is a major support. The index could be vulnerable to a deep retracement should it be pierced.

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.