DRodriguezFX

DRodriguezFX

The tide has turned on USD/JPY as the pair trades sharply below its 52-week Moving Average. Said moving average has been a strong marker of trends in the USD/JPY for the past two decades, and staying below the 52W SMA keeps our focus lower.

DRodriguezFX

Gold is testing a key trendline as it's remained in 'neutral' territory for its longest stretch since 2010. A breakdown targets a much larger decline and a resumption in the multi-year downtrend.

DRodriguezFX

Dollar seems to be on pace for further losses. There's a lot of noise surrounding Greece, but my favored USD-shorts remain the Euro, Sterling, and Japanese Yen (as per yesterday's report: www.dailyfx.com

DRodriguezFX

A break below 11790 doesn't offer much in the way of meaningful support until 11740, May lows near 11630.

DRodriguezFX

This chart highlights the implied volatility range from Euro/US Dollar FX Options pricing ahead of critical European Finance Ministers meeting as well as the highly-anticipated US Federal Open Market Committee interest rate decision. Data source: Bloomberg Professional Service Calculations: David Rodriguez of DailyFX.com

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As an update of the pattern highlighted last week, the Dollar finished below key Fib support and trades just above the 50% Fibonacci retracement of its May-June advance.

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The Australian Dollar has bounced, but $0.7800 remains significant volume-based resistance (twitter.com ) as well as a key Fibonacci level and previous reaction-high. Our bias remains bearish below.

DRodriguezFX

The technical picture looks constructive on the USDOLLAR, but how it reacts at former reaction highs/congestion near 11950 will likely determine short-term direction. Thus far it continues to hold, and staying above keeps our eyes on the 12,000 mark.

DRodriguezFX

The USDJPY looks to be finally breaking out of its range. I wrote about my trade preferences here: www.dailyfx.com . Put simply, when the USDJPY goes it really goes. Given the overall uptrend I think it's reasonable to expect a test of 125.70 at which point we might trail our stops and look for further gains.