Japanese Yen Supported By Safe Haven Status -- Asia Daily Forex Outlook

 
   By Trading Central 
 

        SINGAPORE--Following are expected trading ranges and outlooks for nine major currency pairs in Asia today:
        (Ranges are calculated using recent high and lows, information on the placement of option strikes, and technical analysis - Fibonacci levels, trendlines and moving averages.)
        USD/JPY Intraday: Under pressure. The Japanese yen stays firm against the U.S. dollar, showing again its safe-haven quality amid plunging Chinese stock markets and ahead of a two-day U.S. Federal Reserve FOMC meeting. The US dollar index dropped to as low as 96.288 yesterday and is now around 96.521. Running as low as 122.98 yesterday, USD/JPY is posting a technical rebound but is still capped by the 50-period intraday moving average. The intraday RSI remains in the selling area between 50 and 30. As long as the key resistance at 123.65 is not surpassed, the pair is likely to fall to 122.90 (the lowest level since July 14) and to 122.70 in extension. Alternatively a break above 123.65 could trigger a bounce toward 123.85 (around yesterday's high).
        EUR/USD Intraday: Bias remains bullish. The pair is undergoing a consolidation after surging up to nearly 1.1130 overnight. The 20-period intraday MA is standing over the 50-period one, while the intraday RSI remains within the buying area between 50 and 70 lacking downward momentum. As long as 1.1040 holds as the key support, upside targets are set at 1.1130 and 1.1160. Alternatively a break below 1.1040 could call for further decline toward horizontal levels of 1.0995 and 1.0960.
        AUD/USD Intraday: Under pressure. The pair is posting a rebound after touching 0.7260 on the downside overnight. The 20-period intraday MA has crossed below the 50-period one, while the intraday RSI is mixed around the neutrality level of 50. Even though a continuation of the technical rebound cannot be ruled out, its extent should be limited. As long as the key resistance at 0.7340 is not surpassed, the pair is expected to return to the recent low of 0.7255 (seen on July 24) and drop further to 0.7230. The first alternative upside target above 0.7340 is set at 0.7380.
        NZD/USD Intraday: Upside prevails. The pair has just surged to the upper Bollinger Band, while the intraday RSI is well directed within the buying area between 50 and 70 calling for a new upleg. A further bounce is expected. As long as 0.6595 holds as the key support, the pair could challenge the first upside target at 0.6655 (seen on July 23) and the second at 0.6695 (the high of July 23). Alternatively, below 0.6595 look for further downside with 0.6580 and 0.6555 as targets.
        GBP/USD Intraday: Upside prevails. The pair has validated an intraday inverted "Head-and-Shoulder" pattern, and established a new up trend. The 20- and 50-period intraday MA are positively oriented, and should continue to push the prices higher. Moreover, the oscillator RSI remains above its neutrality level at 50%. In which case, a continuation of the rebound seems to be on the cards with our next targets at 1.5610 and 1.5640, as long as 1.5495 (a horizontal support) is not broken. Alternatively, below 1.5495 look for a new pullback to 1.5465 and 1.5445 as targets.
        USD/CHF Intraday: Challenging key resistance. The pair is trading within a short-term range between 0.9525 and 0.9635, and is now challenging the range's upper boundary. The upside breakout of this threshold seems more likely, as the 20-period intraday MA has reversed up, and should maintain strong buying pressure. Besides, the momentum indicator RSI is still bullish, without showing any reversal signals. In conclusion, as long as 0.9585 is support, look for a new test of 0.9635 in sight, if there is a breakout, expect further advance to 0.965. Alternatively, below 0.9585 look for further downside with 0.9545 and 0.9525 as targets.
        USD/CAD Intraday: Key resistance at 1.3050. The pair is challenging its key resistance at 1.3050 and remains on the downside. The intraday RSI is around 50 and lacks upward momentum. A first target to the downside is set at July 27 bottom at 1.2980. A break below this level would open the way to further weakness towards July 23 low at 1.2950 and July 21 low at 1.2910 as possible. A break above the key resistance at 1.3050 would call for further upside towards July 24 top at 1.3095 at first and then to 1.3125 in extension.
        EUR/JPY Intraday: Bias remains bullish. The pair stays above its key support at 136.10 and remains on the upside. The ascending 50-period intraday MA maintains a bullish bias. Meanwhile, the intraday RSI stands above 50 and lacks downward momentum. Further upside is therefore expected with the next horizontal resistances and overlaps set at yesterday's high at 136.10 and then at 137.60 in extension. A break above these levels would call for further advance towards 138.00 as possible. Only a break below the horizontal support at 136.10 would open the way to further weakness towards July 24 bottom at 135.45 at first. A second alternative target is set at July 22 bottom at 134.95 is possible.
        EUR/GBP Intraday: Upside prevails. The pair has accelerated to the upside after breaking above its previous resistance at 0.7080, which should now play a key support. The ascending 50-period intraday MA maintains a bullish bias. Meanwhile, the intraday RSI is positively oriented. Further upside is therefore expected with the next resistances set at yesterday's top at 0.7160 and then at 0.7185 in extension. A break above these levels would call for further advance towards 0.7205 as possible. Only a break below the key support at 0.7080 would open the way to further weakness towards the horizontal support levels at 0.7060 and then to July 21's high at 0.7040 as likely.
        The information contained in this publication is not intended as an offer or solicitation for the purchase or sale of any financial instrument. Any opinion offered herein reflects TRADING Central current judgment and may change without notice. Users acknowledge and agree to the fact that, by its very nature, any investment in shares, stock options and similar and assimilated products is characterized by a certain degree of uncertainty and that, consequently, any investment of this nature involves risks for which the user is solely responsible and liable. This is a financial news and information service. It is provided in general terms and does not take account of or address any individual user's position. To the extent that this article includes suggestions as to various possible investment strategies which users might consider, it does so in only general terms without reference to the personal factors which should determine any user's investment decisions. Nothing contained in this service constitutes personalized investment advice. Dow Jones does not warrant the accuracy, completeness or timeliness of the information in this article, and any errors shall not be made the basis for any claim against Dow Jones. The author does not invest in the instruments or markets cited in this article. This article does not constitute or form part of any invitation or inducement to buy or sell any security.
        (END) Dow Jones Newswires

        July 27, 2015 21:28 ET (01:28 GMT)

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