23 January 2019 Afternoon Session Analysis
Yen tumbles as BoJ turns dovish.
Japanese yen extended its losses during mid-Asian session following the release of Bank of Japan interest rate decision. Pair of USD/JPY rose 0.31%, last quoted at 109.69. As widely expected, Bank of Japan (BoJ) has kept their policy tools unchanged with the target interest rate at -0.10%. However, the central bank also revised their median Core Consumer Price Index (CPI) forecast lower for the year 2019 and 2020 from 1.4% to 0.9%. The downward revision was widely expected and it reinforces market outlook that the central bank is unlikely to unwind its accommodative policy anytime soon. In the other region, greenback was traded flat at around 95.93 against a basket of six major peers. Market participants continues to ponder upon political developments in the region as US government remains shut for its 31st day. On a brighter note, CNN news reported that the US Senate is likely to vote on the re-opening of US government and Republican’s plan to fund President Donald Trump’s border wall. The resolution in government shutdown may decrease overall market risk and may catalyze higher market demand towards risky assets.
In the commodities market, crude oil price extended its gains by 0.09% to $53.00 per barrel. Oil prices remains steady since early Asian market following hopes that Chinese fiscal stimulus may help to resolve an economic slowdown in China. Otherwise, gold price ticks down 0.07% to $1,284.29 a troy ounce while traders wait for further market signals.
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 | Market & Data | Previous | Forecast | Actual |
| 19:00 | GBP – CBI Industrial Trends Orders (Jan) | 8 | 5 | – |
| 21:30 | CAD – Core Retail Sales (MoM) (Nov) | 0.0% | -0.4% | – |
| 21.30 | CAD – Retail Sales (MoM) (Nov) | 0.3% | -0.6% | – |
| 05.30 (24th) | CrudeOIL – API Weekly Crude Oil Stock | -0.560M | – | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower following prior breakout from the upward trendline. MACD which has formed a bearish signal suggests the index to extend its losses after closing below the 20-MA line (red).
Resistance level: 96.10, 96.50
Support level: 95.75, 95.30
GBPUSD, H4: GBPUSD was traded lower following prior retracement from the resistance level of 1.2960. MACD which illustrate diminished upward momentum suggests the pair to be traded lower in short-term as technical correction.
Resistance level: 1.2960, 1.3030
Support level: 1.2910, 1.2860
EURUSD, H1: EURUSD was traded higher following prior rebound from the bottom level of downward channel. MACD which illustrate bullish signal suggests the pair to be traded higher in short-term as technical correction.
Resistance level: 1.1380, 1.1420
Support level: 1.1330, 1.1310
USDJPY, H1: USDJPY was traded lower following prior retracement from its previous high. MACD which illustrate diminished upward momentum suggests the pair to be traded lower in short-term as technical correction.
Resistance level: 109.90, 110.25
Support level: 109.35, 108.95
AUDUSD, H1: AUDUSD was traded higher following prior breakout from the downward trendline. MACD which illustrate bullish signal suggests the pair to advance further up after successfully closing above 0.7145.
Resistance level: 0.7145, 0.7180
Support level: 0.7110, 0.7070
NZDUSD, H4: NZDUSD was traded higher while currently testing near the resistance of 0.6780. MACD which has formed a bullish signal suggests the pair to extend its gains after breaking the resistance of 0.6780.
Resistance level: 0.6780, 0.6840
Support level: 0.6710, 0.6645
USDCAD, H1: USDCAD was traded lower following prior retracement from the resistance of 1.3360. MACD which illustrate bearish signal suggests the pair to extend its losses after closing below 1.3320.
Resistance level: 1.3360, 1.3385
Support level: 1.3320, 1.3290
USDCHF, H4: USDCHF was traded flat within the range of 0.9990 and 0.9950. MACD which has formed a golden cross signal suggests the pair to extend its losses after closing below the support of 0.9950.
Resistance level: 0.9990, 1.0020
Support level: 0.9950, 0.9905
CrudeOIL, H1: Crude oil price was traded higher following prior rebound from the upward trendline. MACD which has formed a golden cross signal suggests its prices to be traded higher in short-term, towards the direction of 54.10.
Resistance level: 54.10, 55.55
Support level: 52.75, 51.50
GOLD_, H1: Gold price was traded lower following prior retracement from the resistance of 1284.35. MACD which begins to form a bearish signal suggests its prices to be traded lower in short-term after closing below the 20-MA line (red).
Resistance level: 1284.35, 1287.20
Support level: 1280.00, 1273.55