25 October 2022 Afternoon Session Analysis
Yen slipped as BOJ seen keeping ultra-low rates.
The USD/JPY which widely traded by global investors rebounded after the sharp decline on Friday amid the intervention from Bank of Japan (BoJ). According to Reuters, the Japanese currency temporarily surged by more than 7% against US Dollar, as the government and the BoJ made an unannounced intervention in the foreign exchange market. Over $33.6 billion has been sold by BoJ in order to support Yen, reported by The Financial Times. Though, the overall trend of USD/JPY remained bullish following the BoJ was anticipated to maintain its ultra-low interest rate. Although BoJ is expected to raise inflation forecast on Friday, but it would likely to keep negative rates to support the fragile economy. On the other hand, 75 basis point rate hike from Fed was expected by majority of investors, causing the interest rate differential of BoJ and Fed become wider, which prompting investors to flee away from Japanese currency market and purchase US Dollar. As of writing, the USD/JPY depreciated by 0.10% to 148.80.
In the commodities market, the crude oil price appreciated by 0.40% to $84.93 per barrel as of writing amid the expectation of output cut from OPEC+ which would start from November. In addition, the gold price edged up by 0.12% to $1651.78 per troy ounce as of writing following the weakening of US Dollar.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
N/A
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 16:00 | EUR – German Ifo Business Climate Index (Oct) | 84.3 | 83.3 | – |
| 22:00 | USD – CB Consumer Confidence (Oct) | 108.0 | 106.5 | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower while currently testing the support level. However, MACD which illustrated decreasing bearish momentum suggest the index to be traded higher as technical correction.
Resistance level: 113.15, 114.40
Support level: 111.55, 109.95
GBPUSD, H4: GBPUSD was traded lower following prior retracement from the resistance level. MACD which illustrated decreasing bullish momentum suggest the pair to extend its losses.
Resistance level: 1.1370, 1.1635
Support level: 1.1165, 1.0940
EURUSD, H4: EURUSD was traded higher while currently testing the resistance level. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains if successfully breakout the resistance level.
Resistance level: 0.9905, 0.9990
Support level: 0.9810, 0.9730
USDJPY, Daily: USDJPY was traded higher following prior rebound from the support level. However, MACD which illustrated increasing bearish momentum suggest the pair to be traded lower as technical correction.
Resistance level: 150.25, 152.80
Support level: 147.65, 144.80
AUDUSD, H4: AUDUSD was traded lower following prior breakout below the previous support level. MACD which illustrated decreasing bullish momentum suggest the pair to extend its losses.
Resistance level: 0.6370, 0.6470
Support level: 0.6265, 0.6175
NZDUSD, H4: NZDUSD was traded higher while currently testing the resistance level. MACD which illustrated decreasing bearish momentum suggest the pair to extend its gains if successfully breakout the resistance level.
Resistance level: 0.5725, 0.5805
Support level: 0.5635, 0.5545
USDCAD, H4: USDCAD was traded higher following prior rebound from the support level. MACD which illustrated decreasing bearish momentum suggest the pair to extend its gains.
Resistance level: 1.3820, 1.3990
Support level: 1.3635, 1.3455
USDCHF, H4: USDCHF was traded lower following prior breakout below the previous support level. However, MACD which illustrated decreasing bearish momentum suggest the pair to be traded higher as technical correction.
Resistance level: 1.0005, 1.0105
Support level: 0.9930, 0.9860
CrudeOIL, H4: Crude oil price was traded higher following prior rebound from the support level. MACD which illustrated increasing bullish momentum suggest the commodity to extend its gains.
Resistance level: 86.05, 89.00
Support level: 82.45, 79.60
GOLD_, H1: Gold price was traded higher following prior rebound from the support level. MACD which illustrated decreasing bearish momentum suggest the commodity to extend its gains.
Resistance level: 1633.15, 1678.70
Support level: 1648.45, 1635.45