Trade of the Day
USD: The US dollar gained for a second consecutive day on Tuesday as fading optimism over the latest US-China trade truce prompted market participants to buy the greenback after the selloff last week. Wednesday’s US economic docket features September retail sales, which will be evaluated for the strength of US consumer confidence. The NAHB housing market index for October, August business inventories, as well as TIC flows data for August will also be released. Separately, the Fed will release its latest Beige Book report (Thursday).
JPY: Japan industrial production fell again as manufacturing downturn deepened: Final reading confirmed that industrial production slipped by 1.2% MoM in August (Jul: +1.3% after a temporary rebound in July as manufacturing downturn persisted in the second quarter. YoY, IPI slumped deeper by 4.7% (Jul: +0.7%) after a less than 1% temporary rebound in July, marking its sixth decline within a seven-month period.
From a technical and trading perspective USDJPY as 107.85 now acts as support look for a move through last weeks highs enroute to test offers and stops above 109 on the day only a move through 107.40 would concern the bullish bias.USDJPY...Update anticipated drive through last weeks high plays out, however, this new high looks vulnerable as we have significant divergence developing on the daily charts as such, I will setting limit sell orders above 109 expecting intraday & daily sentiment/momentum divergence to be addressed by a more meaningful correction to retest bids towards 107.50
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Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.
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Patrick has been involved in the financial markets for well over a decade as a self-educated professional trader and money manager. Flitting between the roles of market commentator, analyst and mentor, Patrick has improved the technical skills and psychological stance of literally hundreds of traders – coaching them to become savvy market operators!