Forex Daily Forecast, Analysis and Prediction

On Tuesday, the Japanese Yen experienced a strong rally. All of JPY pairs broke through important supports and moved anywhere from 100 to 300 pips. During the New York session, this move ended and new supports were formed.

Since early July, the NZD/USD has been drifting lower, a move that gained momentum couple of weeks ago, and undercut the minor low of 0.7027. The price found support at 0.6996.

Fears of renewed quantitative easing made money flow into the Japanese Yen and the US Dollars, seen as “safe havens”. Largely unheralded, the Swiss Franc also became the beneficiary of this new risk aversion.

The Japanese Yen has been getting a lot of press lately. It has been getting stronger, undercutting the 84.80 low from last against the US Dollar and dropping to the lowest level for USD-JPY in 15 years, if only briefly.

Cable has been trending up again since beginning of June this year after a sharp fall from 1.5400 region to the impressive bottom reached around 1.4280.

The Australian Dollar has resided in the realm of uncertainty over the last few weeks. Even though the Aussie’s fundamentals are positive, the currency has been responding unfavorably to other international news.

The Pound had seen the greatest amount of volatility coming behind the BOE minutes. Despite the fact that the BOE minutes came nothing short of predictable, with merely Andrew Sentence dissenting, the Pound gained strength.

With a lot of attention on USD/JPY, the other crosses of the Japanese Yen are quietly building chart patterns, which will likely lead to directional price movements. One example is the NZD/JPY.

Looking at the technical analysis spectrum, we find that Euro remains in relatively stable intermediate uptrend. However, the tides might be changing if the EUR/USD pair can fall below pivotal technical levels.

The EUR/USD pair sold off sharply last week, closing at the low for the period. This often indicates a continuation of the trend later on. On Monday, however, that has not happened. Why?

The growth in Japan has put a pressure on the risk appetite in London Session. The Yen climbed to 85.20 following a much lower than expected reading.

The Japanese Yen pairs have been in a strong down trend recently. For right now, the longer-term charts still show a bearish bias, but some of the shorter-term graphs indicate possible reversals. One of them is the GBP/JPY.

After testing the 84.80 low from last year, the USD-JPY rebounded on Thursday, closing the day at 85.89. Shortly after that, the exchange rate moved above 86.00, prompting talks about the trend reversal.

Since making the new low of 2.0330 in May, the GBP/NZD has been making new highs. Every upswing took this pair above its previous resistance, and every successive low was above the prior low. This is a definition of an uptrend.

With the policy meetings by the FED and the Bank of Japan, most of the attention among Forex traders have been directed to the US Dollar and the Japanese Yen. Meanwhile, some of the other currency pairs are developing chart patterns, which could result in promising trading opportunities.