RJO FuturesCast

Daily Futures Market News, Commentary, & Insight

Currencies

USD and Yen in Focus

Posted 12/01/2017 10:28AM CT | John Caruso

Reviewing the past few weeks in the USD vs EUR trade, the action has been undoubtedly bearish.  Recently, within the past three weeks, we’ve seen the positive correlation shared between the USD and US Stocks since late August, reverse.  A string of softer readings in US Durable Goods Orders, and inflation has underpinned the USD as of late.  The market is watching the Senate vote on Tax Reform very closely, and a passing of the Bill could reignite the upside in the near-term.  Furthermore, the FOMCs interest rate hike decision on Dec 12th will also be in focus.  Both Tax Reform and FOMC policy could certainly be near-term catalysts for the bulls, we’re watching the 94.50 area on the charts which likely serve as significant overhead resistance for the bulls, while 92.42 will be key support. 

Japanese Yen remains out of favor this morning, but did see a very healthy technical bounce off of trend support at 87.50 to 90.29, highlighted by us three weeks ago.  A softer reading in Japanese Retail Sales early on this week, and a lack of “safe-haven” demand, keeps the yen on a downward track this morning.  However, we’ll keep a close watch for another test of trend line support at 87.90 and an ear to the ground for fundamental support, as another buying opportunity.  Trend Support comes in at 87.90. 

Japanese Yen Weekly Chart

Japanese Yen Weekly Chart

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John Caruso

Senior Market Strategist
Follow John on Twitter @JCarusoRJO. John began his career at Wilshire Quinn Capital, a Wealth Management Firm based out of Los Angeles, California. Prior to becoming a broker he did some individual trading on his own, where he first began to study and interpret different market strategies and ideas. In 2006 John moved over to Lind-Waldock where he began to service clients as a professional broker. He joined RJO Futures in 2011.
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