The USD/JPY pair completed its bullish pattern to the upside on a 30 minute time frame as predicted. This bullish pattern and move to the upside was predicted in our analysis on 12th July. The price is trading below the 50 day (shown in green) and trading near the 100 day (shown in yellow) moving averages which confirms that the bulls are losing their control. If the price action does break the 100 day moving average than the bias could be to the down side.
The EUR/USD pair is trading in a downward channel on a 30 minute time frame. The price is challenging the upper line of the channel which means that the bulls are trying to break this channel towards the upside. Moreover, the price is trading above the 50 day (shown in green) and 100day (shown in yellow) moving averages which further confirms that the bulls have taken the control and there is a change in momentum from the bears to the bulls.
Asian markets closed higher today by building up further gains on top of yesterday’s gain. The disappointing economic data- Chinese GDP released yesterday did not make much impact during the Asian trading session. Having said that, there are still concerns among investors that China may not be able to keep its GDP target in the third quarter in the absence of any stronger commitment from the government as other parts of the economy are still slowing down. The overall impact of this could make the second biggest economy of the world to miss their growth target of 7.5% for 2013.