Global markets poised into Fed Meeting Minutes; USDJPY in focus

Intermediate
  • Global financial markets remain nervous and volatile due to trade war tensions and concerns regarding the global economic slowdown and recessionary fears for the US economy.
  • Today’s FOMC Minutes from the last meeting could provide directional tone across asset classes in the short-term.
  • Here we focus on the risk barometer from the Forex markets, the USDJPY currency pair.

USDJPY bias stays lower, whilst below 106.78

A setback Tuesday with the recent rebound effort capped as we had flagged at our 106.78 resistance, thereby sustaining a negative bias from last week’s push back lower (after the spike to 106.98), to keep risks lower for Wednesday.

The plunge below 106.75 set an intermediate-term bear trend.

For Today:

  • We see a downside bias for 105.93 and 105.60; break here aims for 105.02/00.
  • But above 106.78 opens risk up to 106.98/107.09 and maybe towards 107.28.

Intermediate-term Outlook – Downside Risks: We see a downside risk for 104.56.

  • Lower targets would be 101.19, 100.00 and 99.00.
  • What Changes This? Above 107.09 shifts the intermediate-term outlook back to neutral; above 107.57 is needed for an intermediate-term bull theme.
usdjpy chart

4 Hour USDJPY Chart

Editor in chief

Steve Miley has 29 years of financial market experience and as a seasoned expert now has many responsibilities. He is the founder, Director and Primary Analyst at The Market Chartist, the Editor-in...continued

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