Japanese rate decision: Tuesday morning. The Bank of Japan recently triggered a “mini taper tantrum” in Japanese bond markets. Among developed countries, Japan has the most accommodative monetary policy. Is this about to change? Not very soon. Inflation is still too low and the BOJ would prefer maintaining a low exchange rate for the yen as long as possible. In this meeting, they are likely to maintain their bond-buying program and negative interest rates unchanged, not providing any assistance to the yen.
JPY
Japanese rate decision
- EURUSD
As could be seen on the daily chart that the pair is traded above a strong support level that could be found at 1.2100. So, we believe that as long as the pair is traded above it, it is highly recommended to go long targeting the level of 1.2400 during the week. This is conditioned by the continuation of trading above the level of 1.2100.
| Resistance levels: | Support levels: | Recommended: |
| ▪ 1.25 ▪ 1.24 ▪ 1.23 |
▪ 1.21 ▪ 1.1600 ▪ 1.1550 |
We are bullish as long as the pair is traded above the level of 1.21. |
- GBPUSD
As could be seen on the daily chart that the pair is about to reach a strong resistance level that could be found at 1.40. So, we will be waiting for the pair to reach that level, then in case it shows some negtive factors we can go short targeting the level of 1.3800 followed by 1.3600 during the week. On the other hand, breaching the level of 1.40 can open the door for further upward movements during the week.
| Resistance levels: | Support levels: | Recommended: |
| ▪ 1.40 ▪ 1.39 ▪ 1.3800 |
▪ 1.3650 ▪ 1.3250 ▪ 1.3200 |
We remain bullish as long as the pair is traded above the level of 1.3650. |
- GOLD
As could be seen on the daily chart that the pair is about to reach a strong resistance level that could be found at 1350. So we see that in case that the pair breaks this level, we can go long targeting the level of 1360 followed by 1380 during the week.
| Resistance levels: | Support levels: | Recommended: |
| ▪ 1350 ▪ — ▪ — |
▪ 1330 ▪ 1240 ▪ 1210 |
Waiting for the pair to reach the level of 1350. |
- AUDUSD
As could be seen on the daily chart that the pair is about to reach a strong resistance level that could be found at 0.8060. In case the pair reaches this level, we will monitor the price behavior so we can decide if we can enter the market or not.
| Resistance levels: | Support levels: | Recommended: |
| ▪ 0.8100 ▪ 0.8060 ▪ — |
▪ 0.7900 ▪ 0.7740 ▪ 0.7500 |
Waiting for the pair to reach the level of 0.8060 |
- GBPJPY
As could be seen on the daily chart that the pair has reached a strong resistance level that is the upside of the ascending channel. So, we are waiting for the pair to show up some factors to decide either we will be long or short.
| Resistance levels: | Support levels: | Recommended: |
| ▪ 152.90 ▪ 152 |
▪ 148 ▪ 147 |
The pair is traded below the upside of the ascending channel shown on the chart. |
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