The Japanese Yen hit a 37-year low against the dollar at 152.0 during today’s Asian session, prompting authorities to intervene verbally.

Japan’s Finance Minister, Suzuki, stated they are closely monitoring the FX market with a high sense of urgency and won’t rule out any steps in response to disorderly FX movements.

Despite this, the rally in USDJPY has not yet been stopped. However, an actual intervention might be waiting to happen, particularly if the pair crosses the 152.0 barrier. As a result, traders are advised to be cautious and oversee their risk levels going forward, as the intervention could take some time.

DXY Hovering

 

Despite releasing several US economic indicators yesterday, including Durable Goods Orders, Consumer Confidence, and Housing data, the US Dollar Index remained in a tight range above its support level of 104.0.

In the meantime, as mentioned in our previous report, the bullish bias is yet to be confirmed by a positive weekly close for three weeks in a row, which is a possibility by the end of this week. If the index fails to post a weekly gain by the end of Friday, the bearish bias is likely to remain unchanged .

Gold Above $2180

 

Yesterday, gold experienced a significant increase in price and reached its resistance level of $2200. However, it failed to maintain this increase and closed the day below $2180. Today, the price of gold is making another attempt to reach higher levels and has currently risen to $2190.

A successful breakout is necessary to maintain the bullish bias. Failure to do so may lead to another downward retracement lasting up to two weeks.

USDCHF Near Key Resistance

 

USDCHF has been rallying since the Swiss National Bank unexpectedly cut interest rates last week, adopting a dovish stance, which has pushed USDCHF above 0.90. However, technical indicators show that the currency pair is heavily overbought, which could imply that the upward momentum may slow down in the upcoming days.

From a technical perspective, the next critical resistance area is at 0.9080. It must be closely monitored as it could halt the current rally and initiate a new downside retracement in the upcoming days. As long as the pair trades above 0.8860, the bullish biasis is likely to remain.

 

Prepared by Nour Hammoury, Chief Market Analyst at SquaredFinancial
Nour is an investor, independent market strategist, and financial advisor. He holds a BA in Finance and Banking Science from Al-Ahliyya Amman University and a CFTe in Economics from the International Federation of Technical Analysts. He has more than 15 years of experience in forex, stocks, and global economic developments, as well as central bank policies and intermarket analysis. He appears regularly on major international TV networks, such as BBC, Al-Jazeera, Al Hurra, CNBC, and Bloomberg, holding open discussions and sharing insights and readings of the markets and trends.

Disclaimer
This is a marketing communication and does not contain, and should not be construed as containing, investment advice or an investment recommendation or, an offer of or solicitation for any transactions in financial instruments. Past performance is not a guarantee of or prediction of future performance. The information contained herein does not constitute a personal recommendation and does not consider your personal investment objectives, investment strategies, financial situation or needs. Squared Financial makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on a recommendation, forecast, or other information supplied by Squared Financial.

The information on this site is not intended for any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.