Daily Market Analysis from ForexMart

[Andrea ForexMart]

The EUR/JPY pair dropped in value for the second straight week, recording session lows of 112.60 last Friday and closing down the last trading session at 112.96 points. The Japanese yen was boosted by statements from the Bank of Japan’s governor Kuroda, who has said that there is little possibility that the financial activity in the region would be facing actual risk-taking anytime soon. Furthermore, Kuroda also added that the BoJ might delay hitting its inflation target of 2%, with the imminent weakness in the euro adding up to the bearish stance of the currency pair.

The EUR/JPY has been trading with the 112.05-116.30 since July, and charts for the currency pair are showing that it could possibly go even lower especially since technical indicators for the currency pair are exhibiting bearish stances. The pricing for the EUR/JPY has also received repeated rejections while attempting to break through its 100 DMA.

However, if the pair manages to go beyond its recorded lows, then this could cause the pair to reach 112.05 points, while a further drop could lead to a speeding up of the pair’s momentum with regards to its bearish stance.

[Andrea ForexMart]

The Canadian dollar is moving uptrend because of the oil market price activity. Hence, the pair USD/CAD broker higher last Friday because of signs of market exhaustion keeping a bullish pressure with the US dollar. Traders should also monitor the market activity of oil market as it is substantial in the pair’s proceedings.

The charts formed a shooting pattern last week relative to the crude oil market activity. With this market behavior, it could incite a spur in long positions and could further increase higher than 1.35 level. For the past days last week, a candle pattern was predominant which is advantageous for buyers and send them active. A hammer pattern was also sighted as it leaped to the 1.30 physiological level.

A bullish pressure is about to set in after forming new highs and strong support. This could persist and which is mainly due to the strong position of the US dollars hence, indicative of more bullish pressure. Traders have to find means in case of drawback when go for a long position. It is expected for the physiological level to stand at 1.32 level being the initial support level and could rally going upward.

[Andrea ForexMart]

The USD increased in relation to the JPY amid the impending interest rate hike by the Federal Reserve in December, along with a heightened demand for assets with higher yields. For the last trading session, the USD/JPY pair closed down at 104.175 points after increasing by up to 0.35% or 0.365 points.


The MarketWatch program of the CME Group reported that market traders are expecting a 70% probability that the Fed will be pushing through with its interest rate hike in December. Positive economic data from the previous session caused a reaction from dollar traders with bullish stances while simultaneously reacting to hawkish comments from the FOMC. St. Louis Federal Reserve President James Bullard also commented on Monday that the market would only need a one-time interest rate hike to sustain the economy.


The USD/JPY pair further surged during Monday’s session after a significant increase in the US equity markets caused an increase in demand for high-yield assets. However, this has caused the Japanese yen to decrease in value. The market is not expecting any major economic data from Japan in today’s trading session, and the main determinant of the direction of the currency pair will be the US equity market movement. The USD/JPY is expected to receive more stable support from an increased demand for stocks.

[Andrea ForexMart]

The GBP/USD pair lost some of its footing during the last trading session and has settled within the 1.2200 region. The sterling pound experienced ambiguity after the release of the UK CBI Industrial data showed a drop in manufacturing orders for October and manufacturing output increasing in the previous quarter and volume levels for export reaching its highest levels in over two years as a result of a weakening in the GBP.


The market is expecting that the GBP will be subject to even more pressure due to the uncertainties surrounding the UK amid Theresa May’s Brexit strategies which were subject to questions and concerns from various lawmakers in the UK government. The GBP/USD generally maintains a neutral-bearish stance in its 4-hour chart, with a somewhat bearish 20 SMA and an absence of directional strength in the pair’s technical indicators in the negative side of the chart. Current support levels for the currency pair is at 1.2170, and analysts are expecting a bearish extension if the pair manages to go even lower than the indicated support level.

[Andrea ForexMart]

The USD decreased its value in relation to the JPY during Wednesday’s session after yen traders resorted to safety buying as a reaction to the drop in US equity markets. The trading session closed down with the USD reverting back to its previous value against the JPY. The USD/JPY is currently at 104.468, increasing by up to +0.25% or 0.260 points.

Analysts are stating that the USD dropped further due to concerns regarding the Federal Reserve’s monetary policy and uncertainties regarding the impending US presidential elections. However, the rallying of the USD is an indicator that there is an increased possibility for a Fed rate hike in December, and risks are possibly leaning on the downside territory. This will then add more focus to the release of the Durable Goods report on Thursday and Advance GDP data which will be released this coming Friday.

Thursday’s trading session is expected to have more double-sided trades since traders are monitoring the general direction of the US Treasury yields, as well as high-risk assets demand. Traders should also consider monitoring the stock market, since the JPY is expected to increase if support levels for the US equity markets starts decreasing.

[Andrea ForexMart]

The GBP/USD was able to revert back from its losses during the previous trading day after the cable pair dropped down to its lowest levels since the Brexit referendum was announced. The currency pair fell by up to 150 pips during Tuesday’s trading session and hit 1.2081 points before reaching support levels. The currency pair was then able to recover some of its lost value and has recently had a session high of 1.2243 points. The pair was last seen trading at around 1.2225 points.

On the other hand, the expected US economic data came out as very ambiguous, after Services PMI data increased by 54.8 points for October, going above the expected 52.3 range. US home sales data surged by up to 3.1% for September and had a seasonal yearly rate of 593,000 after failing to reach the expected range of 600,000.

Support levels for the GBP/USD are expected to be at 1.2081 and 1.2000, while resistance levels are expected to be around the region of 1.2259 and 1.2297 points.

[Andrea ForexMart]

The CAD experienced substantial deprecation during Wednesday’s session in spite of a disappointing US crude inventories data. US oil stocks decreased by up to 600,000 bpm last week, going even lower than the expected increase of up to 700,000 bpm. This decrease in oil prices caused a decreasing trend in the Tokyo session after the data for the API inventory exhibited an increase by up to 4.8 million barrels, but crude prices were able to revert immediately after the US Energy Information Administration released its reports. However, these gains were again revoked after traders expressed concerns regarding the OPEC deal.

The USD/CAD pair experienced a significant increase by up to 0.213% during the past session, with the pair now trading at 1.3664 points after the CAD decreased in relation to the USD due to a drop in energy prices. For the rest of this week, CAD traders are expecting the release of the US durable goods data this Thursday. However, the main focus for this week is the flash GDP for the US. The overall growth for the US is showing an increased momentum, and this is expected to cause the USD to significantly increase since this will further cement the possibility of a Fed rate hike in December. However, a further lack of activity from the Federal Reserve might prompt the Bank of Canada to intervene on behalf of the central bank’s monetary policy.

[Andrea ForexMart]

The CAD experienced a drop in relation to the USD after dovish statements from the Bank of Canada last week plus corrections in crude oil prices put downward pressure on the CAD. The USD/CAD pair was able to maintain its bullish stance during Thursday’s trading session, with the pair remaining at the 1.3400 region, which is the pair’s current critical range. However, the pricing for the currency pair was able to drop slightly prior to the opening of the New York session.

The USD/CAD was able to go over its current moving averages after its 50-EMA provided ample support for the currency’s price in the daily chart. However, the pair is seen to have probable difficulties with regards to moving lower from the 50-EMA. The moving averages for the currency pair are generally higher, and analysts are expecting resistance levels to be at 1.3400 points while support levels are expected to be at 1.3300.

The MACD indicators for the USD/CAD pair is still consolidating within its levels, while the RSI remains at the overvalued trading range. Analysts are expecting that if the pair manages to go break through the 1.3400 region, then the USD will be able to have more profits upon reaching the 1.3470 range. On the other hand, if the pair drops and hits the 1.3300, then the market is advised to look at the trading range of 1.3250.

[Andrea ForexMart]

The USD was able to maintain its three-month price advantage against the JPY after a positive US Treasury yields data and growing positive expectations with regards to the Fed rate hike in December. Thursday’s session saw the USD increase further in relation to the Japanese yen, with the USD/JPY bouncing back from its previous losses during the last trading session.

The pricing for the pair remained on the positive territory and was able to reach the 105.00 range during the rest of the trading session. The currency pair was able to go beyond its current moving averages and is currently pointing on the higher side of its hourly chart. Support levels for the currency pair is at 104.50, while resistance levels are set at 105.00.

The MACD indicators for the pair is expected to increase, while the RSI indicator for the pair is currently consolidating within its overbought trading range. The USD/JPY pair will have to maintain its value above 104.50 points in order to retain its bullish stance and create more gains for the pair. Meanwhile, if the pair closes down the trading session at 104.50, then the pair is expected to go even lower at 104.00 points.

[Andrea ForexMart]

The sterling pound was able to acquire some measure of support following the release of a highly positive GDP report for the region. The GBP has now significantly increased in value. However, further profits for the sterling pound was restrained after the USD was able to recover its previous losses.

The GBP/USD remained a few points away from its current support level of 1.2200 during Thursday’s session, with its most recent reversion stalling within the 1.2150 range which caused the pair’s price rate to drop. Meanwhile, the GBP stayed within the 1.2200 range and increased in value during the London session, but the GBP/USD pair slightly weakened during the New York session. The GBP reverted from the 50-EMA within the 1.2200 range and was able to break through the 200-EMA in its hourly chart. The 200 EMA is is exhibiting a downward trend, while the 50 and 100 EMA is currently at the neutral territory. Resistance levels for the GBP/USD is at 1.2300, while support levels for the pair are expected to be at 1.2200.

The MACD technical indicator for the pair is currently at the middle, and an increase in buyer strength is expected once the histogram indicator moves to the positive side of the chart. However, once the MACD enters the negative side, then this will signal a market takeover by sellers. If the sterling continues to weaken, then the GBP/USD pair is expected to go below 1.2200, wherein sellers are expected to move the currency’s value further into 1.2100. On the other hand, the downward pressure on the sterling might be lessened if the pair goes beyond the 1.2300 range.