12 November 2021 Afternoon Session Analysis
USD/JPY surged amid risk off sentiment.
The Japanese Yen which traded against the US dollar and other currency pairs have fell following risk-off sentiment and firmer US dollar. The recent release of better-than-expected US Core Consumer Price Index suggested a soaring inflation pressure while spurring market speculation that Fed will increase its lending rate earlier than expected. On the other hand, according to Bank of Japan (BoJ), Japan Producer Price Index (PPI) came at the reading of 1.2%, while exceeding the forecasted reading of 0.4%. The data suggested a rising cost of input prices, coupled with weaker purchasing power of Japanese Yen that inflated the price of imported goods, have hampered the overall economic growth in the region. Moreover, Japanese Yen also extend its losses following dovish stances from Bank of Japan (BoJ). According to Reuters, BoJ Governor Haruhiko Kuroda mentioned that the central bank set to keep its accommodative monetary policy unchanged until the inflation to hit the elusive 2% target. The accommodative monetary policy would increase the money circulation of Japanese Yen in the financial market hence boosted the pair of USD/JPY. As of writing, the pair of USD/JPY surged 0.27% to 114.055.
In the commodities market, the crude oil price was down 0.06% to $81.45 per barrel as of writing amid weaker demand outlook of oil. According to the report, OPEC cut its oil demand forecast in the fourth quarter of year 2021 as it expected that the soaring inflation pressure could slow down the economy recovery in large oil importer countries such as China and India. On the other hand, the gold price surged 0.11% to $1862.15 per troy ounces amid rising inflation risk which boosted the demand for the commodity as an inflation hedge.
Today’s Holiday Market Close
Time Market Event
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Today’s Highlight Events
Time Market Event
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Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 23:00 | USD – JOLTs Job Openings (Sep) | 10.439M | 10.300M | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher while currently testing the resistance level 95.20. However, MACD which illustrate diminishing bullish momentum signal suggest the dollar to be traded lower as a technical correction towards the support level 94.45.
Resistance level: 95.20, 95.75
Support level: 94.45, 93.85
GBPUSD, H4: GBPUSD was traded lower following prior breakout below the previous support level 1.3425. However, MACD which illustrate diminishing bearish momentum signal suggest the pair to experience a technical correction in short term back towards the level 1.3425.
Resistance level: 1.3425, 1.3545
Support level: 1.3300, 1.3160
EURUSD, H4: EURUSD was traded lower following prior breakout below the previous support level 1.1455. MACD which illustrate persistent bearish momentum signal suggest the pair to extend its losses towards the support level 1.1355.
Resistance level: 1.1455, 1.1535
Support level: 1.1355, 1.1200
USDJPY, H4: USDJPY remain traded in a sideway channel. However, MACD which illustrate bullish momentum signal suggest the pair to be traded higher towards the resistance level 114.60.
Resistance level: 114.60, 115.85
Support level: 113.20, 112.00
AUDUSD, H4: AUDUSD was traded lower following prior breakout below the previous support level 0.7320. MACD which illustrate ongoing bearish momentum signal suggest the pair to extend its losses towards the support level 0.7220.
Resistance level: 0.7320, 0.7385
Support level: 0.7220, 0.7105
NZDUSD, H4: NZDUSD was traded lower while currently testing the support level 0.6985. MACD which illustrate persistent bearish momentum signal suggest the pair to extend its losses after it breaks below the support level.
Resistance level: 0.7075, 0.7145
Support level: 0.6985, 0.6910
USDCAD, H4: USDCAD was traded higher while currently testing near the resistance level 1.2620. MACD which illustrate bullish momentum signal suggest the pair to extend its gains after it breaks above the resistance level.
Resistance level: 1.2620, 1.2765
Support level: 1.2515, 1.2410
USDCHF, H4: USDCHF was traded higher following prior breakout above the previous resistance level 0.9205. MACD which illustrate diminishing bullish momentum signal suggest the pair to extend its gains towards the resistance level 0.9295.
Resistance level: 0.9295, 0.9370
Support level: 0.9205, 0.9145
CrudeOIL, H4: Crude oil price was traded flat while currently testing the support level 81.10. However, MACD which illustrate diminishing bearish momentum signal suggest the commodity to be traded higher towards the resistance level 84.75.
Resistance level: 84.75, 88.40
Support level: 81.30, 78.80
GOLD_, H4: Gold price was traded lower following prior retracement from the resistance level 1867.50. MACD which illustrate diminishing bullish momentum signal suggest the commodity to extend its retracement towards the support level 1831.50.
Resistance level: 1867.50, 1898.40
Support level: 1831.50, 1805.60