Will Japanese Yen (JPY) Finally Strengthen!? New Zealand Dollar Decreases - NZD/USD Chart Dominated By Downtrend! US 30 Goes Up And Down Amid, Fed, Earnings Season And More

Chart of the Week : An ECB rate hike is imminent

USDJPY breaks higher

Intraday Market Analysis – The Yen Sees Further Downside - 1

The yen nosedived after the Bank of Japan vowed to keep its interest rates ultra-low.

The dollar’s surge above the top range (129.30) of the recent consolidation forced early sellers to cover and switch sides. This breakout confirms the MA cross as an indication of a bullish acceleration.

Strong momentum suggests a combination of short-covering and fresh buying. The uptrend may resume towards 132.00 even though an overbought RSI could cause a temporary fallback. 128.30 at the base of the rally is the first support.

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NZDUSD dips into bearish zone

Intraday Market Analysis – The Yen Sees Further Downside - 2

The New Zealand dollar continues southward amid a lack of demand for risk-sensitive currencies.

Sentiment turned bearish after price action failed to hold above this year’s low at 0.6530, invalidating a two-month-long recovery. The pair is heading to a 22-month low at 0.6390.

An oversold RSI may prompt short-term sellers to cover, driving up the price. However, 0.6590 is a fresh resistance, and there is a high chance of a dead cat bounce as trend followers could be waiting to sell into strength.

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US 30 nears critical floor

Intraday Market Analysis – The Yen Sees Further Downside - 3

Dow Jones 30 steadies as a US GDP contraction may temper the Fed’s hawkish stance. The index has given up most gains from the March rally.

The demand zone between 32700 and 33000 is an important guardrail to keep the price afloat in the medium term. A bearish breakout could extend losses beyond 32300, leading up to a potential bear market.

A bullish RSI divergence is an encouraging sign as the sell-off could be slowing down. Nonetheless, buyers will need to push past 34150 to ease the selling pressure first.

Chart of the Week : An ECB rate hike is imminent

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.