As we know, lower highs and lower lows characterise a
downtrend. The Dollar Yen pair (USDJPY) has been going resolutely sideways for
some time. Now it appears that we are getting lower highs and lower lows,
visible on the daily chart, above. It also looks as if sellers of this pair are
using the 50 Day Exponential Moving Average (EMA) as their reference point.
And price remains below the 200 Day Simple Moving Average (SMA).
And price remains below the 200 Day Simple Moving Average (SMA).
There is one more hurdle to be breached before any
definitive conclusions can be arrived at with regard to this, however, and that
is the support that exists at 100.748. Until this is breached it would not be
in any way wise to assume that the dominant trend in the Yen has reversed and
is now to the downside.
Private
capital expenditure future estimates in Oz give AUD strength
Private new capital investment in Australia fell by
4.2% in the first quarter of 2014, as against an expected fall of 1.5%. This
might seem like bad news for the Aussie. However, private new capital
expenditure intentions for the fiscal
year 2014 – 15 were revised up to 9.8% better than previous estimates. And it
is the future the market is concerned with.
This has been enough to strengthen the Aussie
across the board. It is up overnight against the NZ dollar, the Canadian dollar
and the US dollar.
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