Monday, July 24, 2017 6:06 AM EDT
The downfall of the dollar continues and today it is quite pronounced in the pair that usually best reflects US developments.
USD/JPY is trading just above support at 110.60. The line formed part of the steep uptrend channel that the pair was riding on, all the way to 114.50. When the pair moved out of the channel, the pair began falling and falling.
Further support awaits at 109.60, followed by the place where the line began: 108.80. The cycle low is 108.10. Resistance is at 111.80.
Another technical factor to note is the death cross. Since the 50-day moving average slipped below the 200-day moving average, the pair is following the parallel move in December 2015: a huge downfall.
The reasons for the dollar’s downfall stem from mediocre economic data, a slightly more cautious Fed and a rapid pace of political developments around Trump. After Don Junior spilled the beans on his emails regarding a meeting with the Russians, we learned that Mueller will dive into Trump’s business dealings.
This week, we have testimonies by the president’s son, son-in-law Kushner and former campaign manager Manafort, and perhaps unanticipated news.
Here is how the dollar/yen death cross looks like:
Disclaimer: Foreign exchange (Forex) trading carries a high level of risk and may not be suitable for all investors. The risk grows as the leverage is higher. Investment objectives, risk appetite and ...
more
Disclaimer: Foreign exchange (Forex) trading carries a high level of risk and may not be suitable for all investors. The risk grows as the leverage is higher. Investment objectives, risk appetite and the trader's level of experience should be carefully weighed before entering the Forex market. There is always a possibility of losing some or all of your initial investment / deposit, so you should not invest money which you cannot afford to lose. The high risk that is involved with currency trading must be known to you. Please ask for advice from an independent financial advisor before entering this market. Any comments made on Forex Crunch or on other sites that have received permission to republish the content originating on Forex Crunch reflect the opinions of the individual authors and do not necessarily represent the opinions of any of Forex Crunch's authorized authors. Forex Crunch has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: Omissions and errors may occur. Any news, analysis, opinion, price quote or any other information contained on Forex Crunch and permitted re-published content should be taken as general market commentary. This is by no means investment advice. Forex Crunch will not accept liability for any damage, loss, including without limitation to, any profit or loss, which may either arise directly or indirectly from use of such information.
less
How did you like this article? Let us know so we can better customize your reading experience.