USD/JPY June Rebound Unravels, Bearish RSI Trigger Takes Shape -

USD/JPY June Rebound Unravels, Bearish RSI Trigger Takes Shape

Jul 17, 2017Jeremy ParkinsonFinance0

Ticker

Last

High

Low

Daily Change (pip)

Daily Range (pip)

USD/JPY

112.74

112.87

112.33

USD/JPY may continue to give back rebound from the June-low (108.80) as market participants push back bets for the next Fed rate-hike.

The Bank of Japan’s (BoJ) July 20 meeting is likely to spark a limited reaction in USD/JPY as Governor Haruhiko Kuroda and Co. stick to the Quantitative/Qualitative Easing (QQE) Program with Yield-Curve Control, and narrowing bets for higher U.S. borrowing-costs may continue to drag on the dollar-yen exchange rate as Chair Janet Yellen warns ‘the federal funds rate would not have to rise all that much further to get to a neutral policy stance.’ With Fed Fund Futures pricing a 50% probability for a move in December, USD/JPY stands at risk of facing range-bound conditions over the near-term amid waning expectations for three rate-hikes in 2017.

USD/JPY Daily

The failed attempt to close above the Fibonacci overlap around 113.80 (23.6% expansion) to 114.30 (23.6% retracement) keeps the near-term bias tilted to the downside, with USD/JPY at risk for further losses as the Relative Strength Index (RSI) highlights a bearish trigger and threatens the upward trend carried over from the previous month.

Waiting for a close below the 112.40 (61.8% retracement) hurdle to open up the monthly-low (112.08), with the next region of interest coming in around 111.10 (61.8% expansion) to 111.60 (38.2% retracement) followed by the Fibonacci overlap around 109.40 (50% retracement) to 109.90 (78.6% expansion).

Ticker

Last

High

Low

Daily Change (pip)

Daily Range (pip)

GBP/USD

1.3059

1.3117

1.3051