Dollar Recovers Broadly, But Euro Still in Driving Seat Dollar recovers broadly today, except versus Japanese yen. But momentum in the greenback doesn't warrant a sustainable rebound yet. For the moment, Euro is still in the driving seat in the forex markets. Political news out of Germany over the weekend looked positive as Chancellor Angela Merkel secured support form her allies on grand coalition. This will remain a major topic of attention for the week ahead. Besides, US Senate is set to floor their version of tax bill and could trigger some volatilities on the markets. The economic calendar is light today but will build up intensity towards the end of the week. In particular, inflation data from Eurozone, US and Japan are the highlights.
Merkel got support for grand coalition ahead of meeting with SPD
In Germany, Chancellor Angela Merkel met several leaders in her Christian Democratic party in Berlin over the week end. Merkel got some support for reforming t..
USD/JPY Candlesticks and Ichimoku Analysis Weekly
• Last Candlesticks pattern: Dark cloud cover
• Time of formation: 10 Jul 2017
• Trend bias: Down
• Last Candlesticks pattern: Evening doji
• Time of formation: 7 Aug 2017
• Trend bias: Down
USD/JPY – 111.47
Although the greenback dropped to as low as 111.07 late last week, the subsequent recovery suggests consolidation above this level would be seen and corrective bounce to the Tenkan-Sen (now at 112.29) is likely, however, reckon upside would be limited to the Kijun-Sen (now at 112.91) and bring another decline later, below said support would add credence to our view that temporary top has been formed at 114.74 earlier and bearishness remains for the fall from there to extend weakness to the lower Kumo (now at 110.41), then towards 110.00, having said that, oversold condition would limit downside to 109.50-60 and price should stay well above 109.00-10.
On the upside, whilst initial recovery to 112.00, then ..