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FOREX: USDJPY Rallies 200 Pips on Ueda Comments, GBPUSD Fresh Cycle High

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  • USDJPY is extending its impressive bounce on Friday as Bank of Japan Governor Ueda acknowledged that “the upside risk to prices does appear to be easing given the recent yen strength”.
  • Ueda added that time remains to confirm certain points when making policy decisions, indicating that the BOJ will assess the incoming data and economic conditions overseas in the coming months, especially in the US.
  • USDJPY bounced significantly on the comments from 141.74 lows and continues to press fresh session highs above 143.80 at typing. It is worth noting this is within close proximity of the post-FOMC high, located at 143.95. Price action sees us back above the 20-day EMA, an average that was pierced on Thursday and a close above this point will be a bullish development. Above here, markets would focus on a move back towards 145.57, the September 04 high.
  • This has tilted the USD index into positive territory, although price action for other major pairs has been relatively contained.
  • GBPUSD rose to a fresh cycle high of 1.3340 following stronger-than-expected retail sales data in the UK. The move higher this week has resulted in a print above key resistance at 1.3266, the Aug 27 high. The break confirms a resumption of the medium-term uptrend. Note too that moving average studies are in a bull-mode position, reflecting a clear uptrend. Sights are on 1.3362 next, a Fibonacci retracement point.
  • Bank of Canada’s Macklem is due to speak before Canada retail sales data. There may also be comments from ECB’s Lagarde and Fed’s Harker to round off the week.
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  • USDJPY is extending its impressive bounce on Friday as Bank of Japan Governor Ueda acknowledged that “the upside risk to prices does appear to be easing given the recent yen strength”.
  • Ueda added that time remains to confirm certain points when making policy decisions, indicating that the BOJ will assess the incoming data and economic conditions overseas in the coming months, especially in the US.
  • USDJPY bounced significantly on the comments from 141.74 lows and continues to press fresh session highs above 143.80 at typing. It is worth noting this is within close proximity of the post-FOMC high, located at 143.95. Price action sees us back above the 20-day EMA, an average that was pierced on Thursday and a close above this point will be a bullish development. Above here, markets would focus on a move back towards 145.57, the September 04 high.
  • This has tilted the USD index into positive territory, although price action for other major pairs has been relatively contained.
  • GBPUSD rose to a fresh cycle high of 1.3340 following stronger-than-expected retail sales data in the UK. The move higher this week has resulted in a print above key resistance at 1.3266, the Aug 27 high. The break confirms a resumption of the medium-term uptrend. Note too that moving average studies are in a bull-mode position, reflecting a clear uptrend. Sights are on 1.3362 next, a Fibonacci retracement point.
  • Bank of Canada’s Macklem is due to speak before Canada retail sales data. There may also be comments from ECB’s Lagarde and Fed’s Harker to round off the week.