Asian markets closed mostly lower on Friday and failed to pick up steam from the U.S markets which closed in a positive territory. However, the Nikkei 225 which dived more than 5% yesterday did manage to close with a gain of 1.37%, but still down over 4% during this week. Most traders do believe that the recent plunge in the Nikkei was down to the appreciation of the Yen against the dollar, and increased volatility in the bond market
The GBP/USD pair is falling from its resistance level on a 30 minute time frame. This resistance level was given in our analysis on 29th May. The price is trading above the 50 day (shown in green) and 100 day (shown in yellow) moving average which shows that the bulls have taken the control. Moreover, the price is also trading in an upward channel which further strengthens the above argument.
The USD/JPY pair bounced from its support zone on a 30 minute time frame. This support zone was given in our analysis the 29th of May. The price has closed well above the 50 day moving average and it has also taken out the 100-day moving average. This represents that the bulls have finally woken up and taken the control.
Asian markets plunged on Thursday as volatility occupied the stage. The Nikkei 225 dived more than 5% with heavy selling marking the second worst day for the index this year. It was only a few days back that the index dropped more than 7.3% which was the worst drop in over 2 years. However, the Nikkei 225 tumble was followed by a two straight days of gains for Tokyo.
The EUR/USD pair is trading near the resistance zone on a 30 minute time frame. The price is visiting this level for the fourth time therefore this level may not have enough resistance to stop the price action this time. The pair is also trading above the 50-day (shown in green) and the 100-day (shown in yellow) moving averages which suggests that the bulls have taken the control and the price is bullish.
The GBP/USD is trading within the downward channel on a 30 minute time frame. The price has just broken its 50 day moving average (shown in green) to the upside but still trading below the 200 day moving average which suggests that the bulls have started to take the control. However, the recent upward move by price was capped by the 23.6 retracement level of Fibonacci and since then it has failed to break this level which represents a weakness in the price.
Asian markets closed mixed on Wednesday despite the Dow Jones industrial made another record high yesterday. Investors are still concerned around the globe that the Federal Reserve may taper their ultra-loose monetary policy. The Nikkei 225 was the best performer among the Asian indices which closed with a gain of 0.10% or at 14,326.
The USD/JPY pair fell from its resistance level on a 30 minute time frame. This resistance level was given in our analysis yesterday. The USD/JPY pair tried to find its support near the 100 day (shown in yellow) moving average but failed to do so. The pair is also trading sharply below the 50 day moving average (shown in green) which suggests that bears are in control.
The EUR/USD pair is bouncing from its support zone on a 30 minute time frame. This support zone was given in our analysis on the 27th of May. The price action is trading within the symmetrical triangle pattern, and if this pattern does break out to the upside, which they usually do, then the price could go towards the resistance level of 1.31085. However, if this pattern does break out towards the downside then it could go towards the 1.2746 support level.
The Asian markets closed strongly up today by extending their gains for the week. The dollar became stronger against the yen after losing ground in the past few days which pushed the Nikkei 225 up. The index closed with a strong gain of 1.20% and the Bank of Japan’s efforts (buying the government bond) did cool the bond yield in the market. The bank of Japan does want to keep the yield on these bonds low so that the government can spur the economic growth in the country.