USD locked in tight range trade, pares gains as stocks rise
USD : Mixed, China plans no sudden changes in reserve policy, BIS warns of long economic stagnation JPY : Lower, political uncertainty, calls for Japan’s PM to resign, retail sales flat, industrial production rises EUR: Mixed, business climate and economic sentiment improve, ECB policy uncertainty CHF : Lower, pressured by threat of SNB intervention, CPI due for release Friday GBP : Higher, despite report of falling home prices and S&P warning that UK debt could rise to 200% of GDP CAD and
Weekly Technical Commentary
USD/JPY Chart Levels: Support 95.00..94.00..93.55..92.75. Resistance 96.58..97.25..98.58..98.90 Somewhat to our surprise the potential ‘head-and-shoulders’ in which this pair has been trading since March is still valid. During June the top of the weekly Ichimoku ‘cloud’ limited the upside neatly and should now set up a test of the ‘neckline’ in the increasingly pivotal 94.00 area. This also represents the rough mid-point of trading this year where prices have held pretty much between 87.00 and