Violent Reversal From YTD Low Caps Biggest Gain in 8 Months
|R1: 110. 25
The USDJPY has maintained its strong momentum in the last 48 hours, smashing through the key resistance zone at 110.25. The S&P 500 made an all-time high in last night’s trading, which seems to be having a positive impact on the strength of the US dollar in the last trading session. Both the US dollar and the stock market don’t seem to have been impacted by the devastating hurricanes in the US at this stage.
The strong opening gap on the USDJPY from earlier in the week has maintained strong short-term momentum and has the next key resistance of 111.20 firmly in its sights. The short-term uptrend on the 1-hour time frame displayed in the chart above is showing signs that this important level could be reached before the end of the week.
Traders should be on the lookout for the important Crude Oil Inventories, Core CPI data and Unemployment Claims in the US all due to be released tonight. US Retail Sales data due for release tomorrow night will also be important, as it could provide a good indicator of the health of the US economy now that earning season has come to a close.