USD/JPY- Broken its Upward channel but uptrend still strong

The USD/JPY pair has broken its upward channel on a 30 minute time frame. However, the price is still trading above the 50 day (shown in green) and 100 day (shown in yellow) moving averages which confirms that the bulls are still in full control of the price action. The volatility for the pair remains low as the price is trading within the Bollinger band and close to its 20day moving averages.

GBP/USD- Fell from its Resistance as predicted- What Now

The GBP/USD pair fell from its resistance on a 30 minute time frame as predicted. This resistance zone was given in our analysis on 16th of August.  The pair has also broken its upward trend line which confirms that the upward trend has lost its momentum and this trend line may act as a resistance line. However, the price is trading above the 50 day (shown in green) and 100 day (shown in yellow) moving averages which confirms that the bulls perhaps are stepping back in and taking the control.

European market are set to close lower for the week

Asian markets closed mix on the final trading of the week. Investors cheered the rebound on Wall Street yesterday and the German economic data firmed bull’s strength in the market. However, traders are still concerned that the Fed’s tapering program could trigger outflow of funds from the emerging markets.  If the tapering does takes place this could certainly result in re pricing of the treasury yield and the 10 year yield could increase further by almost 2%.