USD/JPY continued moving up and surpassed our previous target of 108, reaching a whole new 6 year high.
You can imagine how pissed off I am now because I got out of the market a bit earlier and missed out on those delicious pips. I should’ve stayed, right?
Turns out I was not the only one who got extremely bored during Ms. Janet Yellen’s FOMC statement yesterday.
I even heard from others that they “would like to see her (Yellen) dancing on the forex dance floor” and I completely agree!
Fed Head Yellen was her usual cautious self during her speech, but the dollar bulls somehow continued dancing up on the forex dance floor.
Elsewhere in the UK the day of reckoning has finally arrived and the ballot boxes are ready to be filled,and the dissolution of the United Kingdom is potentially upon us. Yesterday on the final day of campaigning, the British government brought out the Big Guns as Gordon Brown gave a truly rousing speech in a final campaign push, calling upon Scots to reject independence. Urging the silent majority “to be silent no more…let no narrow nationalism split us asunder”. He called the silent masses to stand up and be counted lambasting anyone who dares to vote yes stating “this is not the Scotland I know”.
The market has already been pricing in the “No” vote quite aggressively and we expect an continuation of this today. One Citigroup was cited as saying “ Not a single one of our clients is preparing for a Scottish exit.” If there vote does fly in the face of expectations there could be egg on a lot of people’s faces, furthermore a lot of cash has been put on the lines as trading volumes amplified today.
Today the data set is all but irrelevant as unless there is seriously shocking news . Weekly jobless claims in the US dropped 36,000 to 280,000 comparing to the estimated 305,000. US August Housing Starts, annualized number of new residential buildings that began construction during the previous month dropped 14.4%. Fed Head Janet Yellen speaks again today at 1.45 PM GMT
Intraday Forex Technical Levels
USD/JPY 4-hour: After reaching previous target of 108, the uptrend prevails.
Invest Diva Likes: Long positions above 108.71 with targets at 110 and 110.52 in extension.
If Pair Goes Nuts: Below 108.71 look for further downside towards 108 and 107.36.
What’s up on the Forex Dance Floor: The pair reached and surpassed our previous bullish targets and is on an overall uptrend above the Ichimoku’s cloud.. The RSI is in the overbought zone.
Supports and Resistances
110.52
110
108.71 Pivot point
108
EUR/USD 4-hour: below the Ichimoku’s cloud.
Invest Diva Likes: Short positions below 1.2874 with targets at 1.2810 and 1.2771 in extension.
If Pair Goes Nuts: Above 1.2917 look for further upside towards 1.2974 and 1.3020.
What’s up on the Forex Dance Floor: The pair is on an overall downtrend and now teasing the support level at 1.2874. It briefly teased inside the the Ichimoku’s cloud but moved back below during the London session. The RSI is below the neutrality area.
Supports and Resistances
1.3020
1.2974
1.2917
1.2874 Pivot Point
1.2810
USD/CAD 4-hour: Entering the Ichimoku’s cloud.
Invest Diva Likes: Short positions below 1.0967 with targets at 1.0937 and 1.0899 in extension.
If Pair Goes Nuts: Above 1.0967 look for further upside towards 1.0997 and 1.1034.
What’s up on the Forex Dance Floor: The pair is teasing the 50% Fibonacci level at 1.0967 within the Ichimoku’s cloud after forming strong bearish candle-sticks. The RSI is heading below the neutrality area.
Supports and Resistances
1.1034
1.0997
1.0967 Pivot point
1.0937
1.0899
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