Intraday Analysis – JPY Bounces Back – Orbex Forex Trading Blog

USDJPY breaks lower

The Japanese yen soared on rumours of a possible tweak to the Bank of Japan’s yield-curve control. Last week’s bounce came to a halt at the bearish MA cross (141.90), revealing a strong pressure after the buy side conceded the demand zone around 138.80. A lack of follow-up support at the psychological level of 140.00 has put early buyers on the defensive. The recent daily low of 137.40 is the next level to see if the rebound from the past two weeks could be preserved and 141.90 is the key obstacle to remove.

XAGUSD hits resistance

Silver tumbled as the US dollar recovered following a series of upbeat economic data. The price has sought to consolidate its gains after it cleared June’s top of 24.50 but the latest bounce has failed to produce a new high above 25.25. A subsequent fall below the swing low of 24.30 is a sign of liquidation, forcing leveraged short-term buyers to bail out and exacerbating volatility. 23.60 may attract traders looking to buy the dip as the RSI sank into the oversold area. The former support of 24.60 has become a fresh resistance.

NAS 100 turns lower

The Nasdaq 100 faltered as stronger-than-expected US economic growth put rate cuts in doubt. An initial pullback has prompted some buyers to take profit. Then the price’s struggle to clear the supply zone between 15800 and 15900 suggests that the path of least resistance could be down. A break below the recent low of 15380 would throw out the latest trend followers and pave the way for a deeper correction. The psychological level of 15000 sits near a daily support, making it a major level to gauge the bulls’ resolve.

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