FX Weekly (30 Oct ’16)
USD/JPY is extending the bounce from psychological support around 100.00, with prices pushing above the 105.00 retracement to reach 105.53.
A short-term corrective pullback towards the 103.15 low of 19 October is possible in the coming days, as daily studies settle back, but any deeper reactions should give way to consolidation as weekly and monthly readings continue to improve, and investors maintain a buy-into-weakness strategy.
In the coming weeks, further gains are looked for, with congestion around 106.00 to attract, ahead of the 106.71 high of 25 July and 107.47 same month high. An unexpected close below congestion around 102.00, however, will negate higher levels and turn investors cautious once again.
To access the full report, covering the USD Index DXY, GBP/USD, EUR/USD, AUD/USD, USD/JPY, USD/CHF and USD/CAD, please click here.