HomeForex UpdatesTwo Trades to Watch: USD/JPY, FTSE

Two Trades to Watch: USD/JPY, FTSE

USD/JPY slips publish BoJ minutes forward of US shopper confidence

USD/JPY rose yesterday, snapping a two-day shedding steak, boosted by the broadly upbeat market temper.

At this time USD/JPY is holding over 136.00 as traders digest the minutes from the most recent BoJ assembly and stay up for the beginning of the two-day FOMC assembly.

The minutes from the BoJ confirmed that policymakers agreed to maintain financial coverage ultra-loose to help the delicate financial system, offering a tailwind for the pair. The BoJ additionally reiterated its dedication to proceed shopping for bonds at an annual tempo of round 80 trillion yen.

Earlier than the FOMC assembly beginning later at this time, US shopper confidence knowledge is anticipated to point out a decline to 97.2 in July, from 98.7.

The Fed is anticipated to lift rates of interest by 75 foundation factors tomorrow, widening the Fed- BoJ divergence.

The place subsequent for USD/JPY?

After final week’s fall to 135.55, USD/JPY has encountered some resistance across the 136.70 degree of the 20 sma. Failure to rise again over the 20 sma, mixed with the bearish MACD, retains sellers hopeful of additional draw back. A break beneath 135.55 is required to increase the bearish pattern in the direction of 135.00 psychological help.

On the flip aspect, a transfer over the 20 sma might see resistance at 137.80 July 11 excessive come into play forward of 138.20.

FTSE rises with earnings, oil in focus

The UK index is rising on the open as traders digest a slew of earnings and rising oil costs. Whereas EasyJet disenchanted, falling following a £133 million hit from flight cancellations and delay chaos.

Unilever, in the meantime, rose after upwardly revising gross sales steerage after value hikes helped the patron staples big beat forecasts.

Caterer Compass Group can also be on the rise after an upbeat buying and selling replace because it raised its natural income progress steerage from 30% to 35% after reporting a doubling in income within the three months to June.

Elsewhere oil majors are on the rise, monitoring oil costs greater as tight provide and issues over Russian gasoline provide lifted costs throughout the vitality complicated.

The place subsequent for the FTSE?

The FTSE has pushed above the 50 SMA, which, mixed with the bullish RSI, means that extra positive factors could possibly be had. Patrons must rise above resistance at 7350 to increase the upward pattern to 7385 the 100 sma. A break above right here brings the 7500 spherical quantity into focus.

Failure to retake resistance at 7350 might see the value fallback beneath the 50 sma at 7300 and open the door to help at 7160 the Might low.

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