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Monday May 11 FX market update - USD/JPY in focus

Good afternoon, 

Monday May 11 FX market update - USD/JPY in focus

The US Dollar was bullish against all of its major pairs on Monday. On the economic data front, no major economic data was released. 

On Tuesday, the National Federation of Independent Business's Small Business Optimism Index for April is expected to fall to 84.0 on month, from 96.4 in March. The Bureau of Labor Statistic's Consumer Price Index for April is expected to decline 0.8% on month, from -0.4% in March. Finally, the Monthly Budget Deficit for April is expected to jump to 737.0 billion dollars on month, from 160.3 billion dollars in March.                                  

The Euro was bullish against most of its major pairs with the exception of the CHF and USD. In Europe, there was no major economic data disclosed.

The Australian dollar was bearish against most of its major pairs with the exception of the NZD and JPY.


Regarding major FX pairs,

EUR/USD fell 26pips to 1.0813 the day's range was 1.0803 - 1.0856 compared to 1.0815 - 1.0876 the previous session.

GBP/USD dropped 73pips to 1.2337 the day's range was 1.2283 - 1.2438 compared to 1.2355 - 1.2467 the previous session.

USD/JPY jumped 99pips to 107.64 the day's range was 106.40 - 107.77 compared to 106.22 - 106.75 the previous session.

USD/CHF gained 11pips to 0.9724 the day's range was 0.9696 - 0.9737 compared to 0.9681 - 0.9739 the previous session.

AUD/USD declined 41pips to 0.6491 the day's range was 0.6457 - 0.6561 compared to 0.6493 - 0.6548 the previous session.

USD/CAD rose 86pips to 1.4013 the day's range was 1.3900 - 1.4043 compared to 1.3909 - 1.3996 the previous session.

The dollar index was up 0.43pt to 100.161 the day's range was 99.666 - 100.281 compared to 99.097 - 99.944 the previous session.


FX pair in focus, The USD/JPY pair remains in focus on an intraday chart after having an impressive up-move of almost 100 pips today. In Friday's FX market wrap, we mentioned a continuation higher would be likely after confirming a bottom triangle pattern. The pair continues to climb since Friday's breakout breaking above previous resistance set at 107.20. The pair remains supported by its 20-period moving average in the uptrend. A break below the 20-period MA and key support at 107.50 could signal a trend reversal. 



Source: GAIN Capital, TradingView


Happy trading.

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