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Daily Technical Insights 10 June 2022



USDJPY traded mostly sideways around the 134 price region for Thursday. Despite the rising U.S. 10 year treasury yield, Yen bulls have found their footing and defended the Yen from slipping further. However, as interest rates between the two countries continue to widen as the year progresses, USDJPY could rise further still. Market participants will focus on the U.S. May CPI data set to be released during the American trading session today.

On the technical side, USDJPY continues to trade higher into the historical territory. Near term, resistance exists around the 134.56 price region, while support levels could be found along the 132.5 price region and the 133.5 price region. RSI for the pair sits at 71.98, slightly above overbought territory. On the four hour chart, USDJPY is trading above its 50, 100, and 200 days SMA.

Resistance: 134.56

Support: 133.5, 132.5


EURUSD experienced strong volatility as the ECB announced its monetary plans for the rest of the year. Thursday’s ECB conference saw a shift towards a hawkish ECB, the council has announced that it intends to raise its key interest rates by 25 basis points at the July meeting; furthermore, the central bank sees further interest rate increases in order to keep pace with its 2% medium-term target. The Eurozone has experienced soaring inflation as multiple constituents turned in a higher than 8% CPI increase for the month of May. During their press conference, the ECB also projected a slower growth of the economy as supply chain issues and geopolitical concerns still loom large across the European region.

The Euro soared at the initial announcement of an interest rate hike, but the Euro soon lost steam and entered a sharp spiral as the ECB announced gloomy forward guidance. RSI for the pair is indicating 48.07, as of writing. On the four hour chart, EURUSD is trading below its 50, 100, and 200 days SMA.

Resistance: 1.07691

Support: 1.06477


The British Pound traded lower against the U.S. Dollar over the course of Thursday’s trading. The strong Dollar was assisted by the soaring short term treasury yield, which has once again traded past the key 3% level. Market participants continue to price in further interest rate hikes by the Fed as they await the key May CPI data, which will be released during the American trading session tomorrow. On the other hand, the U.K. Gilt broke above 2.3%, but the BoE could be stuck between a rock and a hard place as the British economy has slowed significantly since the previous rate hike.

On the technical side, Cable has been consolidating around the 1.25 price region for the past two weeks. The narrowing credit spread has delivered a relatively calm environment for Cable. Near term resistance at the 1.259 price region remains strong. RSI for Cable sits at 47.44, as of writing. On the four hour chart, Cable is trading below its 50, 100 and 200 day SMA.

Resistance: 1.25691, 1.26539

Support: 1.24539

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