USD/JPY

Summary :
Target Level : 104.639
Target Period : 2 days
Analysis :
Rising Wedge identified at 20-Jul-04:00 2016 GMT. This pattern is still in the process of forming. Possible bearish price movement towards the support 104.639 within the next 2 days.
Resistance Levels :
( B ) 106.535Last resistance turning point of Rising Wedge.
Support Levels
( A ) 104.639Last support turning point of Rising Wedge.

Chart date range : 06-Jul-12:00 GMT-> 20-Jul-04:00 GMT Data interval : 4 hour RSI: 34 Candles MA: 34 Candles

Japanese yen is showing limited change on Tuesday

The Japanese yen is showing limited change on Tuesday, after posting considerable losses in the Monday session. In the North American session, the yen is trading at 106.34. There are no Japanese events on Tuesday. Over in the US, Building Permits matched the forecast, while Housing Starts beat expectations.
The yen suffered a dismal week, plunging close to 600 points before reversing directions and dropping 400 points on the week. The yen dropped to levels not since the Brexit vote in late June, as Prime Minister Shinzo Abe’s election victory last week has paved the path for further monetary moves as part of the government’s economic platform. The government is busy preparing a fiscal stimulus package and the markets will be keeping an eye on the Bank of Japan, which meets in late July and could adopt further easing measures. The yen had gained ground after the Brexit vote, even breaking below the 100-level, as the political and economic turmoil bolstered the safe-haven yen.
US consumer indicators were on center stage on Friday, and the numbers were a mixed bag. Consumer inflation reports posted small gains of 0.2%, as inflation levels remain soft. There was better news on the consumer spending front, as Core Retail Sales posted a strong gain of 0.7%, beating the estimate. The UoM Consumer Sentiment report dipped below the 90-point level for the first time in three months, missing expectations. The Federal Reserve is unlikely to raise rates before September at the earliest, unless there is some strong improvement in economic data, particularly inflation and wage growth, which remain at low levels.


USD/JPY Fundamentals
Tuesday (July 19)

• 8:30 US Building Permits. Estimate 1.15M
• 8:30 US Housing Starts. Estimate 1.17M

*Key events are in bold
*All release times are EDT

USD/JPY for Tuesday, July 19, 2016

USD/JPY July 19 at 10:00 EDT
Open: 106.18 High: 106.53  Low: 105.62 Close: 106.40

USD/JPY Technical

S3	S2	S1	R1	R2	R3
103.73	104.99	105.87	106.81	107.65	108.61

• USD/JPY posted slight losses in the Asian session. The pair showed limited movement in the European session and has moved higher in North American trade
• 106.81 is a weak resistance line
• 105.87 is providing support
• Current range: 105.87 to 106.81

Further levels in both directions:

• Below: 105.87, 104.99, 103.73 and 102.36
•  Above: 106.81, 107.65 and 108.61

Australian dollar has posted sharp losses on Tuesday

The Australian dollar has posted sharp losses on Tuesday, as AUD/USD has dropped below the 0.75 level. In economic news, the RBA minutes pointed to a dovish stance by the central bank regarding a rate cut in the near future. Later in the day, Australia releases the MI Leading Index. In the US, we’ll get a look at construction data, with the release of Building Permits and Housing Starts. Neither indicator is expected to show much change in the June reports.
The RBA published its minutes from its July policy meeting, indicating that there was more room to lower rates, given low inflation levels. However, the minutes added that a monetary move by the bank would be data-dependent. In other words, if inflation and other key indicators show improvement, there will be less pressure on the bank to cut rates in order to boost inflation and bolster economic growth. The RBA caught the markets flat-footed in May, when it lowered rates from 2.00% to 1.75% in response to a dismal CPI release in the first quarter of -0.2%. The next CPI release is due on July 27, and another weak reading could be a sign that the RBA will again lower interest rates in order to boost economic growth.

GBP/USD is on a downward trend

•GBP/USD is on a downward trend, having posted losses in the Asian and European sessions
•1.3142 is providing support
•1.3219 has switched to a resistance role following losses by GBP/USD. It is a weak line
Further levels in both directions:
•Below: 1.3142, 1.3064 and 1.2938
•Above: 1.3219, 1.3349, 1.3513 and 1.3675
•Current range: 1.3142 to 1.3219
The British pound has posted considerable losses on Tuesday, erasing the gains from the Monday session. GBP/USD is currently trading at the 1.32 level. On the release front, the UK released a host of consumer inflation indicators, led by CPI. The index posted a respectable gain of 0.5%, beating the forecast of 0.4%. In the US, we’ll get a look at construction data, with the release of Building Permits and Housing Starts. Neither indicator is expected to show much change in the June reports. On Wednesday, it’s another busy day in the UK, with the release of key employment reports, led by Employment Change.
The pound has started the week quietly, in sharp contrast to last week, which was marked by strong volatility. A solid CPI reading for June failed to boost GBP/USD. CPI climbed 0.5%, its strongest monthly gain in three months. Other inflation indicators also beat their estimates. Still, we’ll have to wait for the July CPI report to better gauge the fallout of the Brexit vote, which took place on June 23.

USD/CHF

Summary :
Target Level : 0.9764
Target Period : 3 days
Analysis :
Triangle identified at 18-Jul-20:00 2016 GMT. This pattern is still in the process of forming. Possible bearish price movement towards the support 0.976 within the next 3 days.
Resistance Levels :
( B ) 0.9844Last resistance turning point of Triangle.
Support Levels
( A ) 0.9764Last support turning point of Triangle.

It was a brutal week for the yen

The markets had plenty of US consumer indicators to sift through on Friday, and the numbers were a mixed bag. US consumer inflation reports posted small gains of 0.2%, as inflation levels remain soft. There was better news on the consumer spending front, as Core Retail Sales posted a strong gain of 0.7%, beating the estimate. The UoM Consumer Sentiment report dipped below the 90-point level for the first time in three months, and was short of expectations. The Federal Reserve is unlikely to raise rates before September at the earliest, unless there is some strong improvement in economic data, particularly inflation and wage growth, which remain at low levels.
It was a brutal week for the yen, which plunged close to 600 points before reversing directions and closing the week with losses of 400 points. The yen dropped to levels not since since late June, as Prime Minister Shinzo Abe’s election victory last week has paved the path for further monetary stimulus as part of the government’s economic platform. Abe has asked Economic Minister Nobuteru Ishihara to prepare a fiscal stimulus package and the markets will be keeping an eye on the Bank of Japan, which meets in late July and could adopt further easing measures. The yen had gained ground after the Brexit vote, even breaking below the 100-level, as the political and economic turmoil bolstered the safe-haven yen. Still, with the divorce between Britain and the European Union likely to be acrimonious and difficult, the yen could rebound on Brexit aftershocks.

Bollinger Squeeze

Sometimes called the "Bollinger Squeeze," this technique has been adopted by the breakout style of stock or forex traders and involves findings market situations where the bands narrow tightly around the candles, showing a contraction or indecision in the price. These times of consolidation can lead to a movement in price as many traders know. This charting technique can be useful to the well planned and disciplined trader.
Bollinger Bands were invented by the market technician John Bollinger in the 1980's. He took the idea of the moving average, he then set a moving average on the trading chart as a "center line" that represented the average price of the stock being charted. He then calculated and applied two separate lines above and below the center moving average. The lines were formulated as a measure of volatility by showing the trader these Bollinger Bands as +2 and -2 standard deviations from the center line. Traders can use a momentum indicator such as ADX or MACD. Even multiple moving averages can give a trader looking to determine trend strength. These indicators can help you place a less risky trade.

Bollinger Squeeze