The Forex Market Looks Confused Today
Late last night, USD/JPY started sliding lower after failing to break the 100 SMA (red) on the daily forex chart for the 10th time. I thought that this would be just another retrace lower before the next attempt at the 100 SMA, but now I see that this forex pair is around 100 pips lower from last night.
USD/JPY has just broken 111, so the 11080 support level has come into play. This looks like a good opportunity to consider a USD/JPY long-term buy signal, although I´d prefer to get a better entry price lower, hopefully around 110… if we do get down there today or early next week.
Looking at other forex pairs, we see that the Swiss pairs are also under some pressure, with EUR/CHF back below 1.09. And also, we opened a forex signal in this pair yesterday, so we are long here.
This looks like a run for safety to be honest, since the safe haven currencies are seeing some heavy bids, but at the same time, we can see that risk currencies are also feeling some love.
AUD/USD, NZD/USD and even USD/CAD (was feeling pretty heavy yesterday) is feeling a lot better today. So, this is not a run for cover yet.
We can argue that it´s yet another wave of USD weakness swiping the market, but the Buck is up against the GBP and almost unchanged against the Euro, so it´s not that either.
I think the market is just confused and when it is like this, the safe haven currencies tend to profit, but overall the forex market is uncertain since it is the last trading day of the week. The US GDP and goods orders reports will be up in a while so the market is awaiting them as well.
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