Unsurprisingly the major market's has been steadily digesting the recent moves the past week and entered in a corrective move as expected nearing the closing week of the month. Indeed, for October this year, had been proven to be a roller coaster ride that would end at a higher note for the USD and the major stock indices. And traders are now awaiting for the FOMC data to be release keeping a tight lid on price acceleration from the past week.
JPN225 Average
Likewise the Japanese Nikkei 225 is not an exemption to this rule. While making a dramatic price recovery seen @19182 high and is currently working back lower @18779 to this writing. A correlated move with the USDJPY regaining lost ground moving into the 121.47 high and trading at its current price level @120.82. The price alignment on both the YEN versus the USD and the JPN225 average marking their respective objectives reflects the how markets are well guided by certain benchmarks that once aligned expect a temporary price pause and a steady flow of normality back into the market place. This is over and above the recent news of a rate cut in China which was over-shadowed by investors who have been more keen on the upcoming FOMC report and recent rally on the global markets.
On a Technical Angle:
Tools of the Trade applied is a complex cross section of overlay analysis that were significant in providing directional price swings even before they transpired. JPN225 have found a temporary resistance @19182 high and is on a corrective mode which may continue towards the closing of the month. It has fulfilled its initial price objective on the high. Note that price penetration on a trend would have to retreat back from its original levels. As the current levels has been a good 50% retracement of the previous HI/LO decline which started in August extending towards late September 2015. Click here to continue USDJPY Update
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