|Day's range||106.91 - 106.912|
|52-week range||101.2830 - 112.1860|
The Dollar/Yen finally broke out of its narrow trading range last week despite the recent two-sided shifts in investor sentiment.
The US dollar initially tried to rally for the week, but it is seeming that the ¥107.50 level continues to contain the dollar overall.
The British pound rallied during the week, but continues to face resistance at the crucial ¥135 level. Because of this, I am not overly excited about this pair.
The US dollar had a rough day during the session on Friday, losing money against multiple currencies, and as a result the dollar lost against the yen as well.
British pound fell hard against the yen to kick off the session but found support at the 50 day EMA. We are forming a short-term range to determine where we go.
"The question is whether Fitch decides to be tough and downgrade Italy. We expect that it will remain on hold given that the ECB and EU are showing strong support for Italy through QE and the expected recovery fund," said Danske Bank.
US dollar has done little against the yen on Thursday but that should not be a huge surprise as this pair has been struggling with ¥107.50 all week.
British pound has rallied significantly on Thursday again, reaching towards the 200 day EMA. It looks as if the British pound is ready to continue going higher.
GBP/JPY is testing the 144 ema resistance after bouncing at the 50% Fibonacci support zone. A bullish breakout could confirm a move higher.
Elsewhere, the USD/CNY pair slid 0.2% to 6.9878. The yuan was boosted by better-than expected inflation data for June, with producer prices falling 3% year-on-year. The drop in the PPI was smaller compared with the previous month’s drop of 3.7% and the 3.2% drop analysts had generally forecast. However, the pair is being supported most by the rally in Chinese stocks, which continued for an eighth straight day on Thursday.
It’s a relatively quiet day on the economic calendar. Expect the weekly jobless claims from the U.S, Brexit, and COVID-19 to draw attention.
The US dollar continues to hang around ¥107 as this is a bit of a magnet for price. This is an area that the buyers and sellers both continue to be interested.
British pound rallied against Japanese yen on Wednesday but ran into a lot of trouble at the ¥135 level again. We may get a little bit of a pullback.
The dollar edged higher in early European trade Wednesday, with the safe haven currency in demand as a resurgence of the coronavirus in the United States cast doubt over the strength of the economic rebound. There are almost 11.8 million COVID-19 cases globally as of July 8, according to Johns Hopkins University data, of which the U.S. has the highest known numbers of cases and deaths in the world. A number of Federal Reserve officials expressed concern Tuesday that the surge in infections could adversely impact the economy just as some stimulus programmes are set to expire.
US dollar rallied a bit against the Japanese yen as we continue to see back and forth around ¥107.50. The market is struggling to find any type of direction.
The British pound broke higher on Tuesday against the Japanese yen. The ¥135 level is an area where a lot of people will be paying attention to
G10 currencies may bully the Japanese Yen this week as growing optimism over a swift economic recovery from the pandemic boost appetite for riskier assets at the expense of safe-havens.
Also, USD/CNY rose 0.1% to 7.0207, with the dollar rebounding after the yuan hit its highest level in nearly four months after the sharp gains seen in the Chinese share markets.
Risk appetite continues to support the majors. With the markets not expecting any shift from the RBA, geopolitics and COVID-19 remain curveballs.
US dollar tried to rally against the Japanese yen on Monday, but has pulled back towards the ¥107.50 level, an area that it seems attracted to light a magnet.
British pound rallied a bit on Monday. This was helped by Chinese equities kicking off with the bank, bringing up the amount of risk appetite around the world.
Additionally, the AUD/USD pair gained 0.6% to 0.6979, helped by rising prices for copper and other export commodities. The Reserve Bank of Australia will meet on Tuesday for its policy meeting and is expected to keep its key rate at 0.25%.