News & Analysis

Yen recovers – USDJPY 2-month lows; USD climbs on Tax Reform hope; Eightcap CFD Forex insights

Nov 28, 2017 | Daily Market Outlook

Today’s high impact news:

18:00 GBP Bank Stress Test Results
18:30 GBP BOE Gov Carney Speaks

Overnight – stock indices in the US traded mixed, Dow Jones closed higher while the S&P500 finished slightly lower. Retailers lead the gains as investors bet on strong holiday sales. Wall Street also looked ahead to a Senate vote on tax reform set for later this week. Optimism that it will pass the Senate helped the USD recover from a negative European session. Powell signaled support for further rate rises, DEC looks penciled in. European shares closed lower on Monday lead lower by Technology stocks closing down 0.72 percent. Gold steadied yesterday closing $5.28 higher. Buyers held a $10 gain at one stage testing October 17 highs. Oil declined on Monday losing 109 cents to close at 57.82. OPEC has committed to continue supply cuts, has this been factored into the current price? OPEC will meet this week on Wednesday. The Japanese Yen made a strong recovery overnight sending the USDJPY to two-month lows hitting 110.84. The JPY recorded gains across the majors.

Today – we’re seeing a pullback in the USD to majors USDJPY is trading at a crossroad. The EURUSD made a failed high overnight, we’re watching for a break of yesterday’s low this could set up further downside. The GBPJPY set a new weekly low overnight, support continues to hold at 147.90. We’re looking for further direction as balance continues between buyers and sellers. The AUDJPY put in a new low for November overnight, divergence has started to form. Price is trading higher this morning, we want to see a higher close before giving the divergence any merit. The AUS200 has started higher today after a disappointing finish on Monday. If buyers can close above 5995 this could be a short-term bullish win.

Gold – .Buyers failed to hold gains overnight, price returned to the current ascending triangle pattern. This morning buyers have resumed, will we see a confirmed breakout today?

USDJPY – divergence and support continue to hold despite last night’s breakout attempt by sellers. This could turn out to be a failed low, as long as 111.04 level can continue to hold. 

Good trading from Eightcap.

Sources; Reuters, CNBC

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